27-06-2013, 04:36 PM
A PROJECT REPORT ON HOUSING DEVELOPMENT FINANCE CORPORATION LTD
HOUSING DEVELOPMENT.doc (Size: 181 KB / Downloads: 27)
INTRODUCTION
Headquartered in Mumbai, the bank is one of the first private banks to be set up in India in 1994. With a network reach of 1412 branches spread over 528 cities across India and with over 2890 ATMs across these cities, the bank is the largest private sector bank in terms of branch network in India -- the next largest, ICICI bank, has 1400 branches
Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation of Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.[12]
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by The Reserve Bank of India. As per the scheme of amalgamation, shareholders of CBOP received 1 share of HDFC Bank for every 29 shares of CBOP. The value of the all-share deal worked out to INR 95100 million. The merged entity will have a strong deposit base of around INR 1,220 billion and net advances of around INR 890 billion. HDFC bank is listed on Mumbai Stock Exchange (BSE), National Stock Exchange of India Ltd. (NSE),New York Stock Exchange (NYSE).
Background
HDFC was incorporated in 1977 by Mr. Hasmukhbhai Parekh with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households. The launching of HDFC was meant to be one small step in dealing with the availability of housing accommodation in India which was then virtually non-existent. HDFC as a pioneer launched India's first specialised home loan company with an initial capital of Rs. 100 million.
Business Objective
Our primary objective is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. We aim to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
The HDFC Advantage:
• Pioneers of Housing Finance in India with over 34 years of lending experience.
• Widest range of home loan & deposit products.
• Vast network of over 298 interconnected offices which includes 3 international offices.
• Most experienced and empowered personnel to ensure smooth & easy processing.
• Online loan application facility at www.hdfc.com and across-the-counter services for new deposits, renewals & repayments.
• Counseling and advisory services for acquiring a property.
• Flexible loan repayment options
• Free & safe document storage
LEVERAGE
Leverage can be defined as “the employment of an asset or source of funds for which the firm has to pay a fixed cost or fixed return”. Because of the incurrence of fixed costs, the net income and the earnings available to the equity shareholders as well as the risk gets affected. Leverage is favorable when the earnings less the variable costs exceed the fixed costs or when the earnings before interest and taxes exceed the fixed return requirement. Leverage is unfavorable in the reverse situation.