HDFC Bank success story, who fulfilled his dream of owning a house before retirement, read that HDFC story – the man behind hdfc success, who start home loan concept in india
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childhood spent in chawl
Hasmukhbhai Parekh was born on 10 March 1911 in Surat. Hasmukhbhai Parekh, who spent his childhood in Chowl with his father, started HDFC (Housing Development Finance Corporation) on 17 October 1977 after his retirement from ICICI Bank. Parekh, 66, had a dream that everyone in the country should have their own house. So he started HDFC. HDFC was the first company to introduce home loans for the first time in the country. That too in those times when taking a loan to build a house was considered disrespectful. Hasmukhbhai Parekh got his age, so Hasmukhbhai Parekh got his nephew Deepak Parekh involved in this business.
There was a search for loan takers
At the behest of Kaka, Deepak Parekh joined HDFC in the year 1978 as General Manager. Taking loans at that time was considered dishonorable in our country. At that time people used to deposit only savings money in banks. The bank also used to give loan to people only for business. At that time even thinking of taking a loan to build a house was considered an insult. In such a situation, Hasmukh Parekh and Deepak Parekh had to find borrowers who could take housing loans. HDFC was the only company in the country that offered housing loans, but it still had to find customers for itself. People used to build houses by relying on their savings and PF money. But Deepak Parekh and his uncle changed the whole world.
Pioneer of the Housing Industry
Deepak Parekh is called the pioneer of the housing industry. He fulfilled people’s dream of owning a house with HDFC. Not only fulfilled people’s dream of owning a house before retirement but also assured banks like ICICI and SBI to enter the housing finance sector. Today HDFC has a market cap of over Rs 5 lakh crore. There are more than 90 lakh home loan customers. HDFC first started the home loan business in the year 1978, followed by ICICI Ltd in 1999, SBI in the year 2009.
Who took the first home loan
According to Business Standard, in the year 1978, HDFC Finance gave its first loan to DB Remedius. A home loan of Rs 30,000 was given at an interest rate of 10.50 per cent. This was the company’s first home loan. In the year 1980, the company launched a campaign to make home loans accessible to the common people. He took out a scheme, in which people could deposit money for three years at the rate of 200 rupees and withdraw it after 3 years at 9 percent interest rate. On the other hand, if people wanted, they could take 4 times more amount than the deposited amount from the company as a home loan. People used to get people with easy terms. This became a gamechanger plan for HDFC. The business which started with 30 thousand, today it has reached crores and billions. Now this company is going to merge with HDFC Bank.
This is how HDFC Bank got its license
HDFC started as a non-banking finance company providing home loans. When RBI started giving licenses for banking system expansion in the 90s, HDFC also applied for a licence. HDFC got license as a bank in the year 1994 after meeting the standards. HDFC Bank started expanding along with HDFC Finance.
Fourth largest company in the world after merger
HDFC Finance and HDFC Bank have merged. This merger will come into effect from July 1. According to Bloomberg, after this merger, HDFC Bank will become the fourth largest company in the world by market cap. HDFC will be the largest company followed by JP Morgan, Industrial and Commercial Bank of China, Bank of America. According to the market capitalization, after the merger, the value of HDFC Bank will reach $ 172 billion. After the merger, it will beat not only the big banks of the world but also SBI and ICICI Bank. According to June 2022 data, while SBI’s market cap is $620 million, ICICI Bank’s market cap is $79 billion.
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