Housing Development Finance : Business Responsibility & Sustainability 2020-2021

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FOREWORD

The prism through which companies are being looked at is rapidly changing. In the recent period, the resilience of companies has been tested in terms of how they have been able to withstand the turmoil of the COVID-19 induced pandemic. The other issue taking centre stage is a company's commitment towards environmental, social and governance (ESG) parameters.

Each company's experience on dealing with the pandemic is different as is each company's journey on ESG.

For HDFC, the pandemic has reiterated that there can be no greater security in life than a home. Encouraging home ownership across all income levels has always been our core mission. ESG links together all spheres of activity within HDFC.

Due credit must be given to the Indian capital markets regulator, The Securities & Exchange Board of India (SEBI) for taking the lead in putting together the Business Responsibility & Sustainability Reporting (BRSR) framework. It is a comprehensive framework, which calls for more measureable, quantitative metrics to facilitate better benchmarking.

For the top 1,000 Indian listed companies by market capitalisation, the BRSR is voluntary for FY22 and mandatory from FY23 onwards.

At HDFC, it was a collective decision to adopt the BRSR ahead of schedule for FY21 itself. We remain committed towards deepening our engagement with our stakeholders as we strive towards increasing home ownership in the country.

Keki Mistry

Vice-C hairman & CEO

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CONTENTS

SECTION A:

SECTION B:

SECTION C:

PRINCIPLE 1:

PRINCIPLE 2:

PRINCIPLE 3:

PRINCIPLE 4:

PRINCIPLE 5:

PRINCIPLE 6:

PRINCIPLE 7:

PRINCIPLE 8:

PRINCIPLE 9:

GENERAL DISCLOSURES .............................................................................................................	4
MANAGEMENT AND PROCESS DISCLOSURES ..................................................................	10
PRINCIPLE-WISE PERFORMANCE DISCLOSURE ................................................................	14
BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES
WITH INTEGRITY AND IN A MANNER THAT IS ETHICAL,
TRANSPARENT AND ACCOUNTABLE .....................................................................................	14
BUSINESSES SHOULD PROVIDE GOODS AND SERVICES IN A
MANNER THAT IS SUSTAINABLE AND SAFE ......................................................................	17
BUSINESSES SHOULD RESPECT AND PROMOTE THE WELL-BEING
OF ALL EMPLOYEES, INCLUDING THOSE IN THEIR VALUE CHAINS ..........................	19
BUSINESSES SHOULD RESPECT THE INTERESTS OF AND BE
RESPONSIVE TO ALL ITS STAKEHOLDERS ............................................................................	24
BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS ...........................	26
BUSINESSES SHOULD RESPECT AND MAKE EFFORTS TO
PROTECT AND RESTORE THE ENVIRONMENT ..................................................................	29
BUSINESSES, WHEN ENGAGING IN INFLUENCING PUBLIC AND
REGULATORY POLICY, SHOULD DO SO IN A MANNER THAT IS
RESPONSIBLE AND TRANSPARENT ........................................................................................	33
BUSINESSES SHOULD PROMOTE INCLUSIVE GROWTH AND
EQUITABLE DEVELOPMENT .......................................................................................................	34
BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR
CONSUMERS IN A RESPONSIBLE MANNER .......................................................................	36

Financial Year: April 1 to March 31 1 lac= 100,000; 1 crore =10 million

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SECTION A: GENERAL DISCLOSURES

1. Details

1.	Corporate Identity Number (CIN) of	L70100MH1977PLC019916
	the Company
2.	Name of the Company	Housing Development Finance Corporation Limited ("HDFC/The
Corporation")
3.	Year of Incorporation	1977
4.	Registered office address	Ramon House, H. T. Parekh Marg, 169, Backbay Reclamation,
Churchgate, Mumbai 400 020, India
5.	Corporate office address	HDFC House, H. T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai 400 020, India
6.	E-mail id	[e-mail]
7.	Telephone	[phone]
8.	Website	www.hdfc.com
9.	Financial year for which reporting is	April 1, 2020 to March 31, 2021 (FY21)
	being done

10. Name of the Stock Exchange(s) Equity shares are listed on BSE Limited (BSE) and National Stock

where shares are listedExchange of India Limited (NSE)

11.	Paid-up capital	₹ 360.79 crore
	Name and contact details of the	Ms. Anjalee Tarapore
	General Manager - Management Services and Investor Relations
12.	person who may be contacted in
Telephone number- [phone]
case of any queries on the BRSR
	E-mailid - [e-mail],
	report
	[e-mail]
13.	Reporting boundary	Disclosures made in this report are on a standalone basis and
pertain only to HDFC.

1. Products/services

14. Details of business activities
S. No.	Description of main activity	Description of business activity	% of turnover
1.	Financial and Insurance Service	Other financial activities			100
15. Products/services sold by the entity
S. No.	Product/Service		NIC		% of total turn over
	Code		contributed
1.	The Corporation's main business is financing by way of loans for	64192		100
	the purchase or construction of residential houses, commercial real
	estate and certain other purposes in India. All other activities of the
	Corporation revolve around the main business.
	As at March 31, 2021, in terms of the composition of loans on an
	Assets Under Management basis, 77% were loans to individuals,
	10% construction finance, 7% lease rental discounting and 6% to
	corporates.

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1. Operations

16. Number of locations where plants and/or operations/offices of the entity are situated

Location	Number of plants	Number of offices	Total
National	Not Applicable*	590#	590#
International		3	3

*The Corporation is a Non-Banking Financial Company - Housing Finance Company (NBFC-HFC) and hence does not undertake any manufacturing activity.

#Includes outlets of HDFC Sales Private Limited, which is a wholly owned subsidiary of the Corporation.

17. Markets served by the entity a. Number of locations

Locations	Number
National (No. of states)	Pan-India
International (No. of countries)	3

1. What is the contribution of exports as a percentage of the total turnover of the entity? Not applicable.
2. A brief on types of customers
   The Corporation is India's first mortgage finance company. As at March 31, 2021, the Corporation had cumulatively financed 8.4 million housing units.
   Borrowers:

The Corporation strives to maintain a judicious mix of lending to all income segments. The Corporation makes concerted efforts to focus on loans to the affordable housing segment where the demand for home loans is immense.

Housing Loan Approvals to Customers Based on Income Slabs in FY21

Category	Household Income	Home Loan Approvals in FY21
per annum	% in Value Terms	% in Number Terms
Economically Weaker Section	Up to ₹ 3 lac	2	6
Low Income Group	Above ₹ 3 lac up to ₹ 6 lac	14	27
Middle Income Group	Above ₹ 6 lac up to ₹ 18 lac	44	48
High Income Group	Above ₹ 18 lac	40	19
Total		100	100

Based on individual loans disbursed during the year, the key characteristics of individual loans were:

• 78% were salaried customers, while 22% were self-employed (including professionals).
• The average size of individual loans stood at ₹ 29.5 lac.
• The average loan to value ratio at origination was 69%.
• The average age of the customer was 38 years.

The Corporation has the largest number of home loan customers at over 2.3 lac who have availed benefits under the Credit Linked Subsidy Scheme (CLSS) - a component of the government's flagship 'Housing for All' scheme. As at March 31, 2021, cumulative loans disbursed by the Corporation under CLSS stood at ` 39,333 crore.

In FY21, of the total housing loans disbursed by the Corporation, 48% were to first-time homebuyers. 70% in value terms had women as owners of the property. These loans ensure women's property rights are recognised and protected as their names are registered on their respective properties.

Depositors:

The Corporation also has a large number of depositors, which predominantly comprise retail depositors. As at March 31, 2021, total outstanding deposits stood at ` 1,50,131 crore and the number of deposit accounts stood at approximately 21 lac. Deposit partners/key agents source deposits for the Corporation. The Corporation has over 23,000 key agents.

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