TO THE MEMBERS
Your Directors are pleased to present the Thirty-seventh annual report of yourCorporation with the audited accounts for the year ended March 31, 2014.
| ||For the year ended March 31, 2014 ||For the year ended March 31, 2013 |
| ||(Rs. in crore) ||(Rs. in crore) |
|Profit before Tax ||7,440.24 ||6,572.84 |
|Tax Expense ||2,000.00 ||1,724.50 |
|Profit after Tax ||5,440.24 ||4,848.34 |
|Appropriations have been made as under: || || |
|Special Reserve No. II ||890.00 ||775.00 |
|General Reserve ||1,037.98 ||956.62 |
|Statutory Reserve (under Section 29C of the National Housing Bank Act, 1987) ||900.00 ||825.00 |
|Shelter Assistance Reserve ||60.00 ||40.00 |
|Proposed Dividend (at Rs. 14 per equity share of face value of Rs. 2 each) ||2,184.75 ||1,932.93 |
|Additional Tax on Proposed Dividend ||371.30 ||328.50 |
|Additional Tax on Dividend ||(15.18) ||(24.62) |
|Dividend pertaining to Previous Year paid during the year ||11.39 ||14.91 |
| ||5,440.24 ||4,848.34 |
Your directors recommend payment of dividend for the financial year ended March 31,2014 of Rs. 14 per equity share of face value of Rs. 2 per share as against Rs. 12.50 perequity share of face value of Rs. 2 per share for the previous year.
The dividend payout ratio for the current year, inclusive of additional tax on dividendwill be 47% as compared to 46.6% for the previous year.
In January 2014, the Corporation shifted its corporate office. The new address is HDFCLimited, HUL House, H. T. Parekh Marg, 165-166 Backbay Reclamation, Churchgate, Mumbai 400020. The registered office of the Corporation shall continue to be situated at RamonHouse, H. T. Parekh Marg, 169 Backbay Reclamation, Churchgate, Mumbai 400 020. All contactdetails of the Corporation remain unchanged.
Despite the overall slowdown in the economy, the demand for individual home loanscontinued to remain strong. The demand for affordable housing remained robust withincreased growth coming from tier II and tier III cities. In an endeavour to furthersupport home loans, the Finance Act, 2013 provided a one-time benefitofadditional interestdeduction up to Rs. 1 lac for first-time home buyers, provided the loan amount andproperty cost did not exceed Rs. 25 lac and Rs. 40 lac respectively. This, coupled withthe other fiscal benefits available on home loans has helped reduce the effective rate ofinterest payable on a home loan.
Loan approvals during the year were Rs. 1,15,212 crore as compared to Rs. 1,03,260crore in the previous year and loan disbursements during the year were Rs. 92,455 crore asagainst Rs. 82,452 crore in the previous year.
Individual loan approvals and disbursements grew by 16% and 21% respectively duringtheyear. The average size of individual loans stood at Rs. 22.1 lac as against Rs. 21.6 lacin the previous year.
Cumulative loan approvals and disbursements as at March 31, 2014 were Rs. 6,81,872crore and Rs. 5,48,553 crore respectively. This is in respect of 4.7 million housingunits.
As at March 31, 2014, the loan book stood at Rs. 1,97,100 crore as against Rs. 1,70,046crore in the previous year. Loans sold during the preceding twelve months amounted to Rs.6,944 crore. The growth in the individual loan book, after adding back loans sold was 26%(20% net of loans sold). Due to the economic slowdown and increased risks innon-individual lending, this portfolio grew by 9%. The growth in the total loan book afteradding back loans sold was 20% (16% net of loans sold).
Of the total loan book, individual loans comprise 71%. Further, 85% of the incrementalgrowth in the loan book during the year came from individual loans.
Sale of Loans
During the year, the Corporation, under the loan assignment route sold individual loansamounting to Rs. 5,556 crore to HDFC Bank pursuant to the buyback option embedded in thehome loan arrangement between the Corporation and HDFC Bank. In addition, the Corporationsold individual loans to other banks through the assignment/securitisation route amountingto Rs. 1,388 crore. All the loans assigned or securitised during the year qualify aspriority sector loans for commercial banks.
As at March 31, 2014, total loans outstanding in respect of loans sold/ assigned stoodat Rs. 20,663 crore. HDFC continues to service loans and is entitled to the residualinterest on the loans sold. The residual interest on the individual loanssold/assigned is1.32% per annum. The residual income on the loans sold/assigned is being recognised overthe life of the underlying loans and not on an upfront basis.
Issues through which loans have been sold/assigned which were rated by external ratingagencies carry a rating indicating the highest degree of safety.
During the year under review, Rs. 58,410 crore was received by way of scheduledrepayment of principal through monthly instalments as well as redemptions ahead ofschedule, as compared to Rs. 48,089 crore received last year.
External Commercial Borrowing
During the year, the Corporation raised an external commercial borrowing (ECB) of USD300 million in the form of a syndicated loan facility. The ECB raised was underthe lowcost affordable housing scheme of the Reserve Bank of India (RBI). The Corporation was thefirst housing finance company to draw an ECB under this window.
The proceeds have to be utilised for financing prospective owners of low costaffordable housing units. As per the RBI norms, low cost affordable housing units havebeen defined as units where the property cost is up to Rs. 30 lac, the loan amount iscapped at Rs. 25 lac and the carpet area does not exceed 60 square metres. The ECB is fora tenor of 5 years and the principal has been hedged in accordance with the guidelinesprescribed by the RBI.
As at March 31, 2014, the Corporation's outstanding subordinated debt stood at Rs.3,475 crore. The debt is subordinated to present and future senior indebtedness of theCorporation and has been assigned the highest rating of 'CRISIL AAA/ Stable' and 'ICRAAAA/Stable' by CRISIL and ICRA respectively. Based on the balance term to maturity, as atMarch 31, 2014, Rs. 2,790 crore of the book value of subordinated debt is considered asTier II under the guidelines issued by the National Housing Bank (NHB) for the purpose ofcapital adequacy computation. The Corporation did not issue any subordinated debt duringthe year.
Non-Convertible Debentures (NCD)
During the year, the Corporation issued NCD amounting to Rs. 24,269 crore on a privateplacement basis. The Corporation's NCD issues have been listed on the Wholesale DebtMarketsegment of the National Stock Exchange of India Limited and the BSE Limited. The NCDissues have been assigned the highest rating of 'CRISIL AAA/Stable' and 'ICRA AAA/Stable'. As at March 31, 2014, NCD outstanding stood at Rs. 81,661 crore. The Corporationhas been regular in making payments of principal and interest on the NCD.
Term Loans from Banks, Institutions and Refinance from the National Housing Bank (NHB)
As at March 31, 2014, the total loans outstanding from banks, institutions and NHBamounted to Rs. 32,952 crore as compared to Rs. 17,824 crore as at March 31, 2013.
HDFC's long-term and short-term bank loan facilities have been assigned the highestrating of 'CARE AAA' and 'CARE A1+' respectively by CARE Ratings, signifying highestsafety for timely servicing of debt obligations.
During the year, the Corporation has drawn NHB refinance amounting to Rs. 832 croreunder the Golden Jubilee Rural Housing Refinance Scheme, Rural Housing Fund and EnergyEfficient Housing Refinance Scheme.
As at March 31, 2014, deposits stood at Rs. 56,578 crore as against Rs. 51,933 crore inthe previous year. The depositor base grew from 15.6 lac to 17.5 lac depositors.
CRISIL, a subsidiary of Standard & Poor's Rating Services and ICRA, an associate ofMoody's Investors Service have for the nineteenth consecutive year, reaffirmed a rating of'CRISIL FAAA/Stable' and 'ICRA MAAA/Stable' respectively for HDFC's deposits. Theseratings represent the highest degree of safety regarding timely servicing of financialobligations and carries the lowest credit risk.
The support of the agents and their commitment to the Corporation has been instrumentalin HDFC's deposit products continuing to be a preferred investment for households andtrusts.
As of March 31, 2014, public deposits amounting to Rs. 422.27 crore had not beenclaimed by 38,455 depositors. Since then, 11,813 depositors have claimed or reneweddeposits of Rs. 200.35 crore. Depositors were intimated regarding the maturity of depositswith a request to either renew or claim their deposits. Where the deposit remainsunclaimed, reminder letters are sent to depositors periodically and follow up action isinitiated through the concerned agent or branch.
As per the provisions of Section 205C of the Companies Act, 1956, deposits remainingunclaimed for a period of seven years from the date they became due for payment have to betransferred to the Investor Education and Protection Fund (IEPF) established by thecentral government. Accordingly, during the year, despite repeated reminders being sent todepositors, an amount of Rs. 108.14 lac has been transferred to the IEPF. In terms of thesaid section, no claims would lie against the Corporation or the IEPF after the transfer.
Gross non-performing loans as at March 31, 2014 amounted to Rs. 1,357 crore. This isequivalent to 0.69% of the loan portfolio (as against 0.70% in the previous year). Thenon-performing loans of the individual portfolio stood at 0.53% while that of thenon-individual portfolio stood at 1.01%.
As per NHB norms, the Corporation is required to carry a total provision of Rs. 1,460crore.
The balance in the provision for contingencies account as at March 31, 2014 stood atRs. 1,907 crore of which Rs. 546 crore is on account of non-performing loans and thebalance Rs. 1,361 crore is in respect of general provisioning and other provisions. Thisbalance in the provision for contingencies is equivalent to 0.96% of the loan portfolio.The Corporation carries an additional provision of Rs. 447 crore over the regulatoryrequirements.
The Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (SARFAESI) has proved to be a useful recovery tool and the Corporationhas been able to successfully initiate recovery action under this Act.
The Corporation has complied with the Housing Finance Companies (NHB) Directions, 2010prescribed by NHB regarding accounting standards, prudential normsfor assetclassification, income recognition, provisioning, capital adequacy, credit rating,concentration of investments and capital market exposure norms.
During the year, NHB reduced the provisioning requirements in respect of standard loansfor Commercial Real Estate - Residential Housing (CRE-RH) from 1% to 0.75%. NHB also madeamendments to the risk weights on individual housing loans which have been recalibratedbased on the loan amount and the loan-to-value ratio. The risk weight on CRE-RH waslowered to 75% from 100% earlier, while other commercial real estate loans continue tocarry a risk weight of 100%. This has had a positive impact on the capital ratios of theCorporation.
The Corporation's capital adequacy ratio, without reducing the investment in HDFC Bankfrom Tier I capital, while treating it as a 100% risk weight stood at 17.9% of the riskweighted assets, of which Tier I capital was 15.4% and Tier II capital 2.5%. The capitaladequacy ratio after reducing the investment in HDFC Bank from Tier I capital stood at14.6%, of which Tier I capital was 12.1% and Tier II capital was 2.5%. As per theregulatory norms, the minimum requirement for the capital adequacy ratio and Tier Icapital is 12% and 6% respectively.
Codes and Standards
The Corporation has adopted various codes and standards set out by NHB including interalia Know Your Customer (KYC) Guidelines, Anti Money Laundering Standards, FairPractices Code, Model Code of Conduct for Direct Selling Agents and Guidelines forRecovery Agents engaged by HFCs.
During the year, NHB has stipulated that housing finance companies (HFCs) shall provide'Most Important Terms and Conditions' of housing loans. The Corporation has adhered tothis requirement with the objective of ensuring a better understanding of the major termsand conditions agreed upon between the Corporation and its loan customers.
The Corporation's Share Dealing Code is in accordance with the model code of conduct asprescribed under the SEBI (Prohibition of Insider Trading) Regulations, 1992, as amended.The code is applicable to all directors, employees and their dependents. The said personsare restricted from dealing in the securities of the Corporation during the restrictedtrading periods notified by the Corporation, from time to time.
The Corporation has mechanisms in place to review and monitor adherence to these codesand standards and ensure reporting and compliances as required.
Marketing and Distribution
During the year, efforts were concentrated on further strengthening the distributionnetwork. The Corporation's distribution network now spans 354 outlets, which includes 87offices of HDFC's wholly owned distribution company, HDFC Sales Private Limited (HSPL).
To further augment the network, HDFC covers additional locations through its outreachprogrammes. HDFC has overseas offices in London, Singapore and Dubai. The Dubai officereaches out to its customers across Middle East through its service associates based inKuwait, Qatar, Oman, Abu Dhabi and Saudi Arabia.
The Corporation's distribution channels which include HSPL, HDFC Bank and third partydirect selling associates (DSAs) play an important role in sourcing home loans. In valueterms, HSPL, HDFC Bank and third party DSAs sourced 46%, 24% and 18% of home loansdisbursed respectively during the year.
The Corporation has distribution tie-ups with banks such as Induslnd Bank, RBL Bank andLakshmi Vilas Bank as well as with Sundaram Finance Limited and Cholamandalam DistributionServices Limited. All distribution channels only source loans, while the control over thecredit, legal and technical appraisal continues to rest with HDFC, thereby ensuring thatthe quality of loans disbursed is not compromised in any way and is consistent across alldistribution channels.
The Corporation's marketing efforts were supplemented through an advertising campaign -'ApniJagah Banao''(make your own space) which was well received. Capitalising ontechnology and the growing social media, various innovative online services have beeninitiated for new and existing customers.
Property fairs across major cities in India were organised. To cater to the Indiandiaspora, 'India Homes Fairs' were held in London, Singapore and Dubai where developerswere invited by HDFC to show case their properties.
Value Added Services and Cross Selling
HDFC's subsidiary companies have strong synergies with HDFC. This enables theCorporation to provide property related value added services and cross sell products andservices under the 'HDFC brand.
HDFC Realty Limited, a property advisory company, has a presence in over 23 locationsacross India and helps individuals and corporate institutions to buy, sell or lease realestate. HDFCRED.com, an on-line real estate search engine assists potential home buyers inidentifying properties and provides leads for potential home loan customers.
HDFC and HSPL are Composite Corporate Agents for HDFC Standard Life Insurance CompanyLimited (HDFC Life) and HDFC ERGO General Insurance Company Limited (HDFC ERGO).
International Housing Finance Initiatives
HDFC's expertise in housing finance is well regarded and therefore a number of existingand new housing finance companies are keen to tap the Corporation for training, strategicinput and technical assistance in housing finance.
During the year, senior executives of the Corporation were invited to Indonesia toconduct training programmes on housing finance. The Frankfurt School of Finance &Management and HDFC jointly organised the sixth 'Housing Finance Summer Academy' inGermany, which is a course that aims to provide housing finance solutions for emergingmarkets through a combination of academic knowledge and practical experience.
The Corporation remains committed to sharing its expertise in countries which havenascent mortgage markets - in particular, in Africa. During the year, the Corporationcompleted a study on the mortgage market in Rwanda and is currently engaged in assessingthe feasibility of establishing a housing finance company in Tanzania.
Shelter Assistance Reserve (SAR)
HDFC continued to partner with and support worthwhile projects undertaken bynon-government organizations (NGOs), foundations and local bodies through the SAR. A totalamount of Rs. 13.02 crore was disbursed from the SAR during the year.
The Corporation supported sanitation schemes to construct toilet blocks in a slum areain Pune and in three municipal schools near Chennai. It partnered a foundation in runningthree orphanages for girls in Kashmir, helped an organisation refurbish its educationinstitution catering to girls from impoverished backgrounds in Lucknow and aided therunning of twenty-five 'balwadis' (pre-school centres) in Mumbai.
Support was extended to ADAPT (formerly the Spastic Society of India) towards thesetting up of a neurological, pediatric and orthopedic rehabilitation unit for those withmultiple disabilities. The Corporation also supported Tata Institute of Social Sciencestowards their field action projects on rights and entitlements of de-notified and nomadiccommunities, for custodial institutions and addressing issues of destitution andhomelessness and the Tara Trust for running holistic programmes on the development of lifeskills across eight municipal schools in Goa. Other corpus contributions made from the SARwas towards S.P.J. Sadhana School, Shraddha Charitable Trust, Om Creations Trust, TataMedical Centre and the Indian Institute for Human Settlements, among others.
The SAR was also utilised towards providing relief assistance to victims in theflood-affected areas of Uttarakhand. HDFC employees voluntarily contributed a one-daysalary or more, towards providing relief and respite to the victims of this disaster. HDFCemployees participated in marathons held in Bengaluru, Delhi and Mumbai in support oflocal charities.
Corporate Social Responsibility
In accordance with the provisions of Section 135 of the Companies Act, 2013, theCorporation is required to constitute a Corporate Social Responsibility (CSR) Committee ofDirectors comprising at least three directors including an independent director.
The board at its meeting held on May 6, 2014, constituted the CSR Committee comprisingMr. Deepak S. Parekh (Chairman), Mr. D. N. Ghosh (Independent Director) and Mr. V.Srinivasa Rangan (Executive Director).
The Companies Act, 2013 and the rules made thereunder has defined various activitiesthat can be undertaken towards CSR initiatives which inter alia include povertyeradication, health, education, promoting gender equality, environment sustainability,protection of national heritage, benefits for armed forces veterans and their dependents,sports, contributions to approved central government funds and rural development projects.
The terms of reference of the committee inter alia include formulation ofa CSRpolicy indicating the activities that will be undertaken, recommending the CSR policy tothe board for adoption, recommending the amount of expenditure to be incurred and ensuringa transparent monitoring mechanism for undertaking such activities. The CSR committee willmonitor the implementation of the CSR policy and apprise the board accordingly.
H T Parekh Foundation
The H T Parekh Foundation was set up to commemorate the late Shri H. T. Parekh'senormous contribution to the development of housing finance and other financial servicesin India. During his lifetime, Shri H. T. Parekh was associated with several philanthropiccauses and welfare organisations.
The H T Parekh Foundation was incorporated as a not for profit company licensed underSection 25 of the Companies Act, 1956. The objective of the foundation is to support andpartner socially relevant projects through NGOs, community bodies and organisations in thedevelopment space. The foundation will look into the areas of education, child welfare,health and medical, community development, senior citizens and various programmes in thedevelopmental space.
In terms of the CSR rules as applicable under the Companies Act, 2013, the Corporationcan undertake its CSR activities directly or indirectly through the H T Parekh Foundationas may be decided by the board.
Training and Development
During the year, training efforts were focused on induction programmes for new recruitsand in-house training in operations, accounting, credit risk management, project approvalsand policy implementation and process monitoring. An e-learning platform has been launchedon a pilot basis to enable staff members to hone their skills online. Other trainingrequirements were supplemented by nominating staff members for external programmes andconferences.
In order to raise the bar on customer service, the Corporation embarked on a projectcalled 'Customer Relationship Enhancement through System Transformation' (CREST). Theobjective of CREST is to enhance the service delivery process and bring in a greaterdegree of efficiency between the Corporation's channel partners and customers. During theyear, the first phase of CREST, encompassing the loan approval process has been rolled outacross all branches. The streamlined loan approval system has resulted in faster loanapprovals with higher productivity.
The Corporation has entered its fifth year of focused efforts in rural housing finance.The increase in agricultural and non-agricultural income in rural areas has led tosustained demand for home loans in rural areas. Further, improved infrastructure such asbetter road networks and communication facilities and an increase in remittances to ruralareas by those working in cities are factors stimulating demand for rural housing.
The Corporation has developed skills to assess agricultural income and has put in placerobust legal and technical appraisal mechanisms to cater to the growing rural housingfinance market. Efforts will continue to be made to reach out to progressive farmers andemployed and self-employed individuals in rural India.
Awards and Recognitions
During the year, the Corporation was selected as the 'Best Home Loan Provider' by CNBCAwaaz Real Estate Awards, was adjudged the 'Best Home Loan Provider' by Outlook MoneyAwards for the third consecutive year and was awarded the top Indian company under theFIs/NBFCs/ Financial Services category at the Dun & Bradstreet Corporate Awards.
The Corporation was ranked among the 'Five Best Boards' in a study conducted byEconomic Times and Hay Group on India's best boards. In recognition of HDFC's leadershipin governance, the Corporation received the Qimpro-Best Prax Benchmark award.
The Government of India, Ministry of Corporate Affairs vide General Circular No. 2/2011dated February 8, 2011, had granted general exemption to companies from the requirement ofattaching to their annual report, balance sheet, statement of profit and loss and thereport of the directors and auditors in respect of their subsidiary companies as requiredunder Section 212(8) of the Companies Act, 1956, subject to fulfilling certain conditions.
The Board of Directors has passed the necessary resolutions granting the requisiteapprovals for not attaching to the annual report of the Corporation, a copy of the balancesheet, statement of profit and loss, reports of the directors and auditors of thefollowing 21 subsidiary companies of the Corporation: HDFC Developers Limited, HDFCInvestments Limited, HDFC Holdings Limited, HDFC Asset Management Company Limited, HDFCTrustee Company Limited, HDFC Realty Limited, HDFC Standard Life Insurance CompanyLimited, HDFC ERGO General Insurance Company Limited, GRUH Finance Limited, HDFC SalesPrivate Limited, HDFC Ventures Trustee Company Limited, HDFC Venture Capital Limited, HDFCProperty Ventures Limited, Credila Financial Services Private Limited, HDFC Education andDevelopment Services Private Limited, H T Parekh Foundation, Grandeur Properties PrivateLimited, Winchester Properties Private Limited, Windermere Properties Private Limited,Haddock Properties Private Limited and Pentagram Properties Private Limited and thefollowing step-down subsidiary companies: HDFC Pension Management Company Limited, GrihaInvestments, Mauritiusand Griha Pte. Limited, Singapore have not been attached to thebalance sheet of the Corporation for the financial year ended March 31, 2014.
The annual report of the Corporation, the annual accounts and the related documents ofthe Corporation's subsidiary companies are posted on the website of the Corporation, www.hdfc.com.Shareholders who wish to have a copy of the annual accounts and detailed informationon any subsidiary company can download the same from the website or may write to theCorporation for the same. Further, the said documents shall be available for inspection bythe shareholders at the registered office of the Corporation.
The Corporation has not made any loans or advances in the nature of loans to any of itssubsidiary or associate company or companies in which its directors are deemed to beinterested, other than in the ordinary course of business.
Review of Key Subsidiary and Associate Companies
HDFC Bank Limited (HDFC Bank)
HDFC and HDFC Bank continue to maintain an arm's length relationship in accordance withthe regulatory framework. Both organisations, however, capitalise on the strong synergiesthrough a system of referrals, special arrangements and cross selling in order toeffectively provide a wide range of products and services under the 'HDFC brand name.
As at March 31, 2014, advances of HDFC Bank stood at Rs. 3,03,000 crore - an increaseof 26% over the previous year. Total deposits stood at Rs. 3,67,337 crore - an increase of24%. As at March 31, 2014, HDFC Bank's distribution network includes 3,403 branches and11,256 ATMs in 2,171 locations as against 3,062 branches and 10,743 ATMs in 1,845locations as of March 31, 2013.
For the year ended March 31, 2014, HDFC Bank reported a profit after tax of Rs.8,478.40 crore as against Rs. 6,726.28 crore in the previous year, representingan increaseof26%. HDFC Bank has recommended a dividend of Rs. 6.85 per share of face value of Rs. 2each as against Rs. 5.5 per share for the previous year. During the year, the Corporationreceived a dividend of Rs. 216 crore from HDFC Bank.
HDFC together with its wholly owned subsidiaries, HDFC Investments Limited and HDFCHoldings Limited holds 22.6% of the equity share capital of HDFC Bank.
HDFC Standard Life Insurance Company Limited (HDFC Life)
Gross premium income of HDFC Life for the year ended March 31, 2014 stood at Rs. 12,063crore as compared to Rs. 11,323 crore in the previous year. The sum assured in force atthe end of FY 2014 was Rs. 2,72,697 crore as compared to Rs. 2,01,858 crore in theprevious year, representing a growth of 35%.
The Company has a portfolio of 22 retail products and 8 group products covering saving,investment, protection and retirement needs of its customers, along with 9 optional riderbenefits.
HDFC Life's distribution network includes 429 branches, covering 985 cities. Inaddition, the company has 75,000 financial consultants, 4 bancassurance partners and 7pan-India brokers and corporate agency tie-ups. In FY 2014, HDFC
Life ranked third among private sector life insurers in terms of market share based onthe weighted received premium of individual business.
HDFC Life has reported a profit after tax of Rs. 725.28 crore for the year ended March31, 2014 as against Rs. 451.48 crore in the previous year. The back book is generatingsufficient profits to offset the new business strain incurred in writing of new policies.
As at March 31, 2014, the Market Consistent Embedded Value stood at Rs. 6,992 crore (PYRs. 5,872 crore). The new business margin on individual business stood at 26% (based onloaded acquisition expenses).
During the year, HDFC Life declared a maiden dividend of 5%. The solvency ratio of thecompany was 194% as at March 31, 2014 as against the minimum regulatory requirement of150%.
HDFC holds 72.4% of the equity share capital in HDFC Life.
HDFC Asset Management Company Limited (HDFC-AMC)
As at March 31, 2014, HDFC-AMC managed 50 debt, equity, exchange traded fund and fundof fund schemes of HDFC Mutual Fund. The average assets under management during the monthof March 2014 stood at Rs. 1,16,753 crore (which is inclusive of average assets underdiscretionary portfolio management/ advisory services). HDFC Mutual Fund has been rankedfirst in the industry on the basis of quarterly average assets under management for theyear ended March 31, 2014. The number of investor accounts was in excess of 45 lac as atMarch 31, 2014. HDFC-AMC has 141 investor service centres across the country.
For the year ended March 31, 2014, HDFC-AMC reported a profit after tax of Rs. 357.77crore as against Rs. 318.75 crore in the previous year.
HDFC holds 59.8% of the equity share capital of HDFC-AMC.
HDFC ERGO General Insurance Company Limited (HDFC ERGO)
During the year, HDFC ERGO continued to retain its market ranking as the fourth largestprivate sector player in the general insurance industry. Further, the company continued tobe the largest player in the personal accident line of business.
The Company offers a complete range of insurance products like motor, health, travel,home and personal accident in the retail segment and customised products like property,marine, aviation and liability insurance in the corporate segment. The company continuesto leverage on the HDFC group's distribu