'HDFC has always focused on customer
service'
How do you view the Indian
Housing Finance Sector's Significant progress since Independence ?
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There has been a very significant progress
in the Housing Finance Sector since Independence. HDFC was the first Housing
Finance Institution (HFI) set up in October 1977. Till March 31, 1999 HDFC
made loan approvals amounting to more than Rs. 18,910 crores on a cumulative
basis and the cumulative investment made possible in the housing sector
exceeded Rs. 40,541 crores. HDFC's progress over the last twenty two years
chronicles in a way the development of the financial sector in India. Setting
up of the National Housing Bank as a Refinancing and Regulatory Authority
for HFIs have been a very significant step towards development of HFIs
in India.However, a lot is yet to be done in the Housing Sector to increase
the housing stock as well as to make it affordable. As was the case with
last year's budget the current year's budget also contains several measures
both to boost housing to make housing loans more affordable and to increase
flow of funds to the housing sector.
How do you look at the future
of this Sector ?
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HFI will have a good growth in Future.
The need for housing already existing and the rate of growth is phenomenal.
As such, the potential is there. What becomes important is the availability
of good affordable housing. The fund flow to the sector also has to increase
many fold. All countries developing or developed give top priority to housing
its people. In fact housing provides the necessary impetus to the economy
as a whole. Thus, if the importance of this sector is duly recognised the
growth that we will see will be tremendous.
Where does Indian Housing Finance
Sector stand compared to International Sector?
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The Housing Finance Sector in India
is growing but is yet to reach the mature status like that of UK or USA.
In India the ratio of average property prices to annual incomes significantly
improved from 20 : 1 twenty years ago to 4-5 : 1 today. Yet this is much
more comparable to the figure prevailing in developed countries, such as
the UK and USA. Long term resources also are available to the housing sector
in the developed countries where loans are scrutinised and used for raising
resources.
What do you think are the major
problems of Housing Finance Sector in India ?
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The major problems for HFI is some of
the existing laws in the country. The repeal of Urban Land (Ceiling and
Regulation) Act is an welcome change and now it is up to the State Government
to fall in line. Introduction of Foreclosure Act, the simplification of
Building Plan and Approval process and rationalisation of various provisions
of the Stamp Duty will go a long way in improving the scenario.
Do You suggest any measures to
improve the status of this sector ?
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Already mentioned in the previous questions.
What has been the operational
performance of HDFC, specially in Eastern Region ?
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The growth of HDFC in the Eastern Region
also has been quite good. During the year, HDFC opened an office in Salt
Lake and two more offices are on the anvil in the city of Calcutta which
shows our commitment to Eastern Region. On the lending side the growth
has been on the healthier side showing substantial growth over the previous
years. On the resources mobilisation front, the region has outperformed
all the other regions.
What are you doing about improving
the service of HDFC ?
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HDFC has always focussed on customer
service. We have the system of constantly reviewing our systems and procedures
to suit customer service. We give a lot of importance to customer feedback
which helps us examine the way we doing our business. HDFC has invested
considerably in technology to provide better service. HDFC's investment
in technology will continue unabated to ensure that it stays at the leading
edge of technology and is able to offer the customer the best product at
the most attractive pricing at a time and place that is most convenient
to him.
What will be the future strategy
of HDFC ?
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The strength of HDFC today is its "brand''
name apart from its customer focussed strategy, its management and work
culture and ethical practices. For HDFC, these will be the fundamental
driving force as we go forward in the future.
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