BUSINESS RESPONSIBILITY

REPORT

Seventh Business Responsibility Report

2018-19

Housing Development Finance Corporation Limited

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HOUSING DEVELOPMENT FINANCE CORPORATION LIMITEDBUSINESS RESPONSIBILITY REPORT 2018-19

(Pursuant to regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015)

SECTION A :

GENERAL INFORMATION ABOUT THE COMPANY

4 Website www.hdfc.com

5 E-mail id investorcare@hdfc.com

6 Financial Year Reported April 1, 2018 to March 31, 2019

3 Registered of�ce address Ramon House, H. T. Parekh Marg,169, Backbay Reclamation,Churchgate,Mumbai 400 020 India

Corporate of�ce address HDFC House,H. T. Parekh Marg,165-166, Backbay Reclamation,Churchgate,Mumbai 400 020 India

7 Sector(s) that the Company is HDFC is a housing �nance company regulated by theengaged in National Housing Bank (NIC Code - 64192).

Dubai and service associates in the Middle East.

10 Markets served by the Company The Corporation has a PAN-India presence. Refer to List of Of�ces, which forms part of the Annual Report for details.

(I) Number of International Locations To cater to non-resident Indians, the Corporation has overseas representative of�ces in London, Singapore and

business activity is undertaken by done only in India.the Company

8 List key products/services that the The Corporation’s main business is �nancing by way ofCompany provides loans for the purchase or construction of residential

houses, commercial real estate and certain otherpurposes, in India. All other activities of the Corporationrevolve around its main business.

9 Total number of locations where As per the applicable regulations all lending activities are

(ii) Number of National Locations T h e C o r p o r a t i o n h a s a PA N - I n d i a p r e s e n c e . As at March 31, 2019, the Corporation has 534 of�ces in India including outlets of HDFC Sales Private Limited (HDFC Sales), a wholly owned subsidiary of the Corporation.

1 Corporate Identity Number (CIN) L70100MH1977PLC019916of the Company

2 Name of the Company Housing Development Finance Corporation Limited(HDFC and Corporation)

F O RT I E TH AN N UAL RE PO RT 2 01 7 -1 8

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SECTION B :

SECTION C :

FINANCIAL DETAILS OF THE COMPANY

OTHER DETAILS

3. Total pro�t after taxes Rs. 9,632.46 crore

Key areas of CSR Activities in the �nancial year 2018-19were healthcare & sanitation, skilling & livelihood andeducation.

1. Paid-up capital Rs. 344.29 crore

2. Total turnover Rs. 43,378.01 crore

4. Total spending on Corporate Rs. 173.52 crore which was more than 2% of the average Social Responsibility (CSR) as a net pro�ts of the Corporation during the last 3 �nancialpercentage of pro�t after tax years, computed as per Section 198 of the Companies

Act, 2013.

Further details are provided in the Annual Report on

Corporate Social Responsibility Activities 2018-19.

Further details are provided in the Annual Report onCorporate Social Responsibility Activities 2018-19.

5. List of activities in which The Corporation undertakes various CSR activities in

expenditure in Sr. No. 4 above accordance with its policy on Corporate Social

has been incurred Responsibility.

The major subsidiary companies have their own BR initiatives and generally do not participate in the BR

initiatives of the Corporation.

No.

1. Does the Company have any subsidiary company/companies?

2. Do the subsidiary company/companies participate in the Business Responsibility (BR) initiatives of the

parent company? If yes, then indicate the number of such subsidiary company(s).

Yes. As at March 31, 2019, the Corporation had 18 subsidiary companies and 4 associate companies.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with,

participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/

entities? [Less than 30%, 30-60%, More than 60%]

SECTION D :

BUSINESS RESPONSIBILITY (BR) INFORMATION

3. Designation Executive Director

2. Name Mr. V. Srinivasa Rangan

1. DIN Number 00030248

a) Details of the Director responsible for implementation of the BR policy

1. Details of Director/Directors responsible for BR

1. Name Mr. Praveen Kumar Bhalla

2. Designation Senior General Manager – Human Resources

3. Telephone number +91-11-41596576

4. E-mail id praveenb@hdfc.com

b) Details of the BR Head

P2 Businesses should provide goods and services that are safe and contribute to sustain abilitythroughout their life cycle

P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner

P1 Businesses should conduct and govern themselves with ethics, transparency andaccountability

P3 Businesses should promote the well-being of all employees

P4 Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

P5 Businesses should respect and promote human rights

P7 Businesses, when engaged in in�uencing public and regulatory policy, should do so in a responsible manner

P8 Businesses should support inclusive growth and equitable development

Details on each of the principles are provided in Section E.

P6 Businesses should respect, protect and make efforts to restore the environment

2. Principle-wise as per National Voluntary Guidelines (NVGs) Business Responsibility Policies

T he NVGs on social, environmental and economic responsibilities of business prescribed by the

Ministry of Corporate Affairs advocates nine principles referred as P1-P9 as given below:

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Principle-wise Business Responsibility Policies (Yes/No)

Ethics Product Human Corporate Respect Respons- Public Inclusive Customer & Tran- Respon- Resou- Social for Human ible lend- Policy Growth Engag-

sparency sibility rces Responsi- Rights ing norms Advocacy ementbility

6 Indicate the link for the Y Y - Y - - - Y -policy to be viewed online (Refer (Refer (Refer (Refer (Refer (Refer (Refer (Refer

Note b) Note b) Note c) Note b) Note c) Note c) Note b) Note c)

8 Does the Company have Y Y Y Y Y Y - Y Yan in-house structure to implement the policy?

10 Has the Company carried Y Y Y Y Y Y - Y Yout independent audit/ (Refer (Refer (Refer (Refer (Refer (Refer (Refer (Referevaluation of the working Note d) Note d) Note d) Note d) Note d) Note d) Note d) Note d)of this policy by an internal or external agency?

5 Does the Company have Y Y Y Y Y Y - Y Ya speci�ed committee of the Board/ Director/ Of�cial to oversee the implementation of the policy?

2 Has the policy been Y Y Y Y Y Y - Y Yformulated in consultation (Refer (Refer (Refer (Refer (Refer (Refer (Refer (Refer with the relevant Note a) Note a) Note a) Note a) Note a) Note a) Note a) Note a)stakeholders?

Sr Questions P1 P2 P3 P4 P5 P6 P7 P8 P9No

3 Does the policy conform Y Y Y Y Y Y - Y Yto any national/ (Refer (Refer (Refer (Refer (Refer (Refer (Refer (Referinternational standards? Note a) Note a) Note a) Note a) Note a) Note a) Note a) Note a)If yes, specify?

1 Is there a policy for Y Y Y Y Y Y N Y Y

4 Has the policy been Y Y Y Y Y Y - N N approved by the Board?If yes, has it been signed by MD/ owner/ CEO/ appropriate Board Director?

7 Has the policy been Y Y Y Y Y Y - Y Yformally communicated to all the relevant internal and external stakeholders?

9 Does the Company have Y Y Y - Y - - Y Ya grievance redressal mechanism to address stakeholders’ grievances related to the policy?

# Principle-wise policies

P2 Product Responsibility The Corporation’s Fair Practices Code and Most Important Terms and

Conditions are based on ethical principles of integrity and transparency and

guide this principle. The objective of setting such standards and practices is

to foster con�dence in the housing �nance system.

P1 Ethics & Transparency The Corporation’s Code of Conduct for Employees, Executive Directors &

Senior Management, Non-Executive Directors, Direct Selling Agents and

Deposit Agents, Fair Practices Code, Whistle Blower Policy, Policy on Con�ict

of Interest and Anti-Bribery and Anti-Corruption and other internal policies

elucidate ethical behavior, transparency and accountability.

P3 Human Resources The Corporation has various policies to support employee well-being. The

important ones include the policy on ensuring safety of women at workplace,

policy on health and safety of employees, comprehensive employee health

insurance policy, personal accident policy, policy on maternity bene�ts for

female employees, policy on self-education for employees, policy on providing

soft loans to employees for purchasing of house, furniture & �xtures, vehicles,

sponsoring employees for training & development, leadership development

programmes etc.

P4 Corporate Social The Corporation’s CSR Policy guides this principle.Responsibility

Rights the principles in the United Nations’ Universal Declaration of Human Rights.

norms lending policies and abstains from lending to environmentally irresponsible

projects. In addition, employees are sensitised to prevent wasteful usage of

natural resources and conserve energy.

P7 Public Policy While the Corporation may share its expertise to help in the formulation of

Advocacy public policy, it does not directly engage in lobbying or advocacy activities

and hence, does not have a speci�c policy for this purpose.

P8 Inclusive Growth The CSR policy encompasses activities focused on the marginalised and

vulnerable sections of society. In its effort towards inclusiveness, the

Corporation also offers specialised housing �nance products that cater to the

vulnerable and low income segments. These policies are part of the

Corporation’s lending business.

P9 Customer The Code of Conduct, internal policies, benchmarks on customer service and

Engagement policies as stipulated by the regulators encompass this principle.

P5 Respect for Human The Code of Conduct details the respect for human rights and supports

P6 Responsible lending The Corporation evaluates environmental and social risks in its

The Corporation publishes a Business Responsibility Report (BRR) on an annual basis. The BR reports are placed on the Corporation’s website. The hyperlink is: https://www.hdfc.com/investor-relations/annual-report.

d. The policies are internally evaluated by various department heads, business heads and the management.

The Corporation has a Sustain ability Report which is also placed on the Corporation’s website. The hyperlink is https://www.hdfc.com/about-us#social-initiatives.

a. The policies have been developed based on the best practices or as per the regulatory requirements and through appropriate consultation with relevant stakeholders.

b. May include a combination of internal policies of the Corporation which are accessible to all internal stakeholders and the policies are placed on the Corporation’s website. The hyperlink is https://www.hdfc.com/investor-services#codes-policies.

The Corporation had published a report based on the guiding principles of the International Integrated Reporting Council.

The Corporation’s business responsibility performance is reviewed by the Board of Directors on an annual basis.

During the year under review, the Corporate Social Responsibility Committee of Directors and the Stakeholders Relationship Committee of Directors met four times each.

The executive directors and senior management of the Corporation monitor various aspects of social, environmental, governance and economic responsibilities of the Corporation on a continuous basis.

c. The policies of the Corporation are internal documents.

Notes:

Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assesses the BR performance of the Company. Within 3 months, 3-6 months, annually, more than 1 year

3. Governance related to BR

Does the Company publish a BR or a Sustain ability Report? What is the hyperlink for viewing this report? How frequently is it published?

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HDFC categorises its stakeholders to include housing loan customers, agents, depositors, shareholders, debenture holders, amongst others. There are various mechanisms in place for recording and redressing complaints raised by each of these stakeholders.

HDFC has formulated and adopted various codes and policies to facilitate ethical decision making. They reinforce HDFC’s culture of transparency in business and are continuously updated in line with the dynamic business environment and regulatory norms. The codes and policies are designed to cover employees in all functional areas by adhering to the laws applicable to the Corporation's business including anti-bribery and anti-corruption practices, ethical handling of con�icts of interest and fair, accurate and timely disclosure of reports and documents to regulatory bodies. Ethical values and zero tolerance to bribery and corruption percolates to all group companies of the Corporation.

HDFC through its policy on dealing with related parties along with its pricing policy aims to ensure that all the dealings with related parties are carried out on an arm’s length basis thereby ensuring zero bias.

1. Does the policy relating to ethics, bribery and corruption cover only the Company? Yes/No. Does it extend to the group/joint ventures/suppliers/contractors/NGOs/others?

Yes. HDFC's governance practices are administered by the Board of Directors and committees involved in managing stakeholder priorities and concerns. Its robust framework ensures that all its daily operations are conducted in a transparent and accountable manner. HDFC’s zero tolerance in the matters relating to unethical practices, bribery and corruption, has helped it not only gain the tremendous con�dence and trust of its stakeholders but also market leadership.

HDFC ensures compliance of ethical standards not only by its employees but also by its vendors, contractors etc. through appropriate clauses in the work contract signed with them. This includes Code of Conduct formulated for its Direct Selling Agents and Deposit Agents.

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof.

HDFC believes that customers are one of the most important stakeholders and hence it is essential to engage with them, understand their expectations and accordingly, provide the desired service standards. Such grievance redressal is considered of paramount importance and the Corporation undertakes adequate measures to redress the grievances. Towards the same, the Corporation has in place a software called "Customer Relationship Enhancement and Managing System" (CREAMS) to record, monitor and redress the grievances/feedback received from the customers, which helps in maintaining higher service standards. The Corporation is migrating from CREAMS to new software to facilitate greater ef�ciency for redressal of complaints.

HDFC, under the CREAMS initiative has identi�ed senior executives at all the branches who are responsible for ensuring ef�cient and effective redressal of complaints within a prescribed turnaround time. All complaints are monitored at the corporate of�ce by the customer engagement team. The complaints posted on social media are also �agged at the CREAMS portal for effective redressal.

HDFC has an in-built escalation mechanism wherein complaints are escalated to the level of business heads, regional business heads/functional heads and Managing Director. The complaints forwarded by the regulatory and supervisory authorities are tracked separately within CREAMS. A grievance redressal procedure recommended by National Housing Bank (NHB) is also available on HDFC's website for the bene�t of its customers. An escalation matrix for grievance received from the investors is also available on the website of HDFC.

BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS, TRANSPARENCY AND ACCOUNTABILITY

Principle 1

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SECTION E : PRINCIPLE-WISE PERFORMANCE

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• HDFC continues to be committed to inclusive housing �nance

and also facilitating the 'Housing for All' initiative of the

government. HDFC provides a range of home loan products to

cater to all segments of the society, for instance HDFC Reach

Details of the stakeholder complaints received during the �nancial year 2018-19 and pending as on March 31, 2019 are as under:

• HDFC has played a developmental role in the housing �nance sector in India, having promoted

a number of housing �nance companies to penetrate in the market, including India’s �rst rural

housing �nance company. Towards facilitation of rural housing, HDFC provides housing �nance

facilities to farmers, agriculturists, planters and horticulturists. HDFC has also played an

important role in establishing housing �nance companies in nascent housing �nance markets in

Africa and Asia.

1. List up to 3 products or services whose design has incorporated social or environmental

concerns, risks and/or opportunities.

loans aim at addressing the housing �nance needs of the customers belonging to the

unorganised sector having suf�cient income, but limited documentation such as shopkeepers,

carpenters, drivers, contractors, etc. Apart from home loans, HDFC also extends small equity

and funding lines to upcoming ventures and customers.

• The Corporation is a pioneer in retail housing �nance in India. It

is the �rst Indian �nancial institution to fund individuals to

enable them to become homeowners. The Corporation has

cumulatively �nanced 7 million housing units in the country.

HDFC seeks to work with real estate developers that promote

the use of innovative technologies such as green buildings and

other energy ef�cient measures for construction of their

projects. HDFC has always emphasised on exploring

opportunities of collaboration with partners in ensuring

conservation of energy and resources. HDFC encourages the

usage of environmental friendly building materials from the

local building centers as a part of its low-income housing

initiatives.

* Out of this, 2 complaints are pending as on the date of this report i.e. May 13, 2019.

BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE TO SUSTAINABILITY THROUGHOUT THEIRLIFE CYCLE

Principle 2

Sr. Nature of complaints No. of complaints received Pending as on

No. during the year March 31, 2019

1 Complaints/ queries received from 23,596 (0.63% of the 25*

home loan customers and depositors customer and depositor base)

2 Investor complaints 12 NIL

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I. Reduction during sourcing/production/ distribution achieved since the previous year

throughout the value chain.

The housing �nance regulator, NHB, prevents housing �nance companies from directly

undertaking any construction activity. However, a vigorous technical assessment of properties

and projects �nanced by HDFC is a critical part of its approval and disbursement procedures.

Given that the Corporation is a �nancial services provider, one of the major resources consumed

by the Corporation is paper. HDFC promotes use of electronic means of communication with its

stakeholders. It encourages the use of electronic mode of payment to and from all its

stakeholders. Soft copies of the annual report 2017-18 along with the notice convening the st41 Annual General Meeting and the dividend e-payment advice were sent to over 2 lac

shareholders so as to minimise the usage of paper. Further, for the current year, annual interest

certi�cates were sent via e-mail to more than 18 lac customers. HDFC also has an online portal

to provide a user-friendly and frictionless approach to home loan approval process.

Further, through a joint effort with the International Finance Corporation, HDFC has

strengthened its impact assessment mechanisms through increased environmental and social

governance.

2. F or each product, provide the following details in respect of the resource use (energy, water,

raw material etc.) per unit of product (optional):

HDFC has also introduced the use of kiosks at trade fairs and property exhibitions. These kiosks

facilitate electronic �ling of loan

a p p l i c a t i o n fo r m s a n d

directly link the data of

potential customers to its

loan processing system.

II. Reduction during usage by

consumers (energy, water)

has been achieved since the

previous year.

HDFC regards climate change mitigation and environmental conservation as essential elements

of a sustainable business and has taken several initiatives towards digital loan processing,

renewable energy, waste management and energy reduction. Hence, the focus is to limit the

dangers attributable to growing effects of climate change.

Special efforts had been made during the design stage of HDFC's corporate of�ce to ensure

abundant natural light across the work area, thereby, reducing electricity consumption. HDFC

promotes the use of energy star equipment and uses systems that conserve power.

The interiors of the corporate of�ce building are based on guidelines from the Leadership in

Energy & Environmental Design Council (LEED). HDFC's corporate of�ce building achieved

LEED Gold Certi�cation under the LEED for Commercial Interiors Rating System. All parameters

are maintained to continue LEED Gold Certi�cation.

HDFC has also undertaken other initiatives and energy ef�cient measures at its of�ce premises

such as use of occupancy sensors, reduction of light power density by using LED light �ttings

and provision of centralised waste collection. At most of its of�ces across India, the CFL light

�ttings are being shifted to LED light �ttings to conserve energy.

F O RT I E TH AN N UAL RE PO RT 2 01 6 -1 7

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HDFC has also installed AFC panels in junction / distribution boards to reduce power

distribution losses. Sensors are installed in of�ce toilets to economise power and water

consumption only when these facilities are being used. Employees of HDFC are encouraged to

save electricity by using staircase and not lift.

Given that the Corporation has a PAN-India presence, the of�ces generally procure of�ce

utilities and other items required in the normal course of operations from local vendors.

However, as per the Corporation’s policies, standard procurement norms and procedures have

to be adhered to.

Employees of HDFC are encouraged to save electricity by using staircase and not elevators,

with dual aim of ensuring health and �tness of its employees and also to a certain extent help in

minimizing electricity consumption. To promote health and �tness among employees, the

Corporation runs an in-house programme titled, “Don’t burn electricity, burn calories”.

4. Has the company taken any steps to procure goods and services from local and small

producers, including communities surrounding their place of work? If yes, what steps have

been taken to improve their capacity and capability of local and small vendors?

Yes. The Corporation endeavours to use environmental friendly materials with higher recycle

content, such as green guard rated furniture and gives regional priority to material purchases of

such recycled products.

The Corporation has also provided transport facility/car pooling viz. bus/jeep facility in some of

its of�ces which helps in cutting down the number of cars and vehicles on the road. These

efforts contribute to ensuring a more sustainable environment by way of minimising the carbon

emission and air pollution.

While the Corporation sensitizes its employees and customers to conserve energy and water, it

does not speci�cally capture data on such reduction.

3. Does the company have procedures in place for sustainable sourcing (including

transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide

details thereof.

5. Does the company have a mechanism to recycle products and waste? If yes what is the

percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide

details thereof.

HDFC has also installed solar power roof panels to save grid power as a green initiative. These

solar power panels consist of Solar PV modules which generate DC electricity on sunny days.

The system so installed is capable of recording the number of units of solar power generated

and also facilitates the storage of data for future reference. The system has been examined and

certi�ed by an inspector from the Ministry of Natural Resources Energy, Government of India.

This initiative has resulted in saving ~ 4,000 KWH every month and the system is maintained to

get the same output in future. Additionally, HDFC has also adopted the practice of switching off

lights at workstations, when not in use.

The Corporation is a housing �nance company. The key waste products of the Corporation

primarily entail paper and electronic waste.

HDFC has embraced an e-waste management system. The waste generated at the

Corporation’s of�ces is managed as per the waste disposal process. The Corporation engages

with certified e-waste handlers for disposal of e-waste and uses local vendors for disposal of paper for

recycling. HDFC’s computer systems and electronic wastes are gathered at the branch levels. HDFC

has tied up with e-waste recycling vendor who picks up the e-waste and disseminates the various

parts using CRT cutters, cable strippers, and plastic shredders at their facility. They then segregate

them on the type of materials and send for recycling or safe disposal as per the green norms.

The Corporation also ensures that any equipment and material which are redundant at certain

offices are diverted to locations where the same would be brought to use.

As at March 31, 2019

1. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year.

2. What percentage of employees were given safety and skill up-gradation training in the last year?

HDFC has always believed that its employees are its most valued resource and hence, has always

ensured their all-round development through regular training & leadership programmes. There is

2 Number of employees on 1,992

temporary/contractual/casual basis

4 Permanent employees with disabilities The Corporation upholds the importance of being

an equal opportunity employer and hence makes

no distinction between employees based on

disabilities. HDFC has also framed an "Equal

Opportunity Policy" in accordance with the

provisions of the Rights of Persons with

Disabilities Act, 2016 and the rules framed

thereunder and provides a framework which is

committed towards the empowerment of persons

with disabilities.

5 Is there an employee association that No

is recognised by management?

The female:male ratio stood at 25:75. The

Corporation maintains a gender inclusive

environment and believes in equal opportunities at

the workplace.

1 Total number of permanent employees 2,840

3 Number of permanent women employees 724

6 Percentage of permanent employees Not applicable

that are members of this recognised

employee association

BUSINESSES SHOULD PROMOTE THE WELL BEING OF ALL EMPLOYEESPrinciple 3

Sr. Category No. of complaints filed No. of complaints No. during the financial year pending as at the end of the financial year

2 Sexual harassment 1 Nil

3 Discriminatory employment practices Nil Nil

1 Child labour/forced labour, Nil Nilinvoluntary labour

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These training programmes are based on the needs identified, competency or job specific knowledge,

skills and attitude gaps identified during the performance appraisal process and through discussions.

At times, customer feedback also acts a base to identify learning and development needs.

Leveraging technology, many of the class room programmes have been delivered online through an

e-learning platform called "HDFC Aspire" which allows employees to enhance their knowledge on

products, policies and processes. Various knowledge enhancing courses were launched during the

year on functional areas like overview on Rural Housing Finance, Overview on Technical Appraisal,

Information & Cyber Security Awareness and Code of Conduct which were very well received by the

participants. Virtual classroom initiatives have also been undertaken to blend and enhance the

learning processes. Other programmes conducted during the year include those on Sexual

Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, leadership,

mentoring, train the trainer and soft skills like negotiation, communication, amongst others.

Given below are the details of training imparted during the year:

1. Has the company mapped its internal and external stakeholders? Yes/No

2. Out of the above, has the company identified the disadvantaged, vulnerable and marginalised

stakeholders?

Human Resources Development Department that ensures that employees are sufficiently trained in

functional and behavioral skills to ensure high standards of service to internal and external stakeholders.

HDFC nominates staff for self-development and leadership programmes to enhance their

effectiveness. On-the-job training, job rotation or internal, external or international trainings are

offered to employees to upgrade their competencies. HDFC has a training center in Lonavala,

Maharashtra ‘Center for Housing Finance’ where newly inducted employees are given training about

various products, services, functions of the Corporation.

For HDFC, safety of its employees is of paramount importance and as a good corporate citizen; it is

committed to ensuring safety of all its employees at the work place. The Corporation has in place a

policy on health and safety of employees. Periodic communication and alerts are sent out to employees

and awareness sessions are conducted on safety related aspects. Employees including those at branches

were given periodic training on basic and advanced fire safety including evacuation drills. HDFC has tie-

ups with vendors to educate and demonstrate use of fire-fighting equipment.

Yes.

The Corporation fully endorses and supports the government’s endeavour towards its flagship

scheme, “Affordable Housing for All”. Towards this goal, the Corporation has given housing loans to

customers categorised as ‘economically weaker sections’ and ‘low income group’, under various

schemes of the government. Additionally, HDFC is undertaking a project by partnering with an

experienced NGO to supply safe and clean drinking water to slum communities at affordable rates,

thereby assisting them to alleviate water borne diseases and reduce health costs.

The Corporation’s CSR activities focus on the disadvantaged, vulnerable and marginalised segments

of society.

1 Permanent employees to whom training has been imparted 2,847

2 Total training man days per employee 7.07

3 Permanent women employees to whom training has been imparted 733

BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE TOWARDS ALL STAKEHOLDERS, ESPECIALLY THOSE WHO ARE DISADVANTAGED, VULNERABLE AND MARGINALISED

Principle 4

11

Yes. The Corporation continues to support a range of social interventions and development initiatives (irrespective of the size of the implementing agency) to facilitate a deep and long-term impact for a developed and inclusive society.

HDFC has also supported and funded social initiative projects like premises for educational purpose, hostel blocks and senior citizen housing. Senior citizen projects provide an opportunity to people aged 60 and above to live with dignity in their own home, in a community of like-minded people and are provided with all amenities and medical support.

During the year, HDFC had collected ` 90.85 lac from its 2,600

employees to contribute to the Chief Minister’s Distress Relief Fund to support the State Government in Kerala subsequent to heavy rain and �ooding in the state of Kerala.

3. Are there any special initiatives taken by the company to engage with the disadvantaged,

vulnerable and marginalised stakeholders. If so, provide details thereof.

Given the projected growth of urbanization and the consequent housing demands in India, the Ministry of Housing and Urban Affairs introduced in June 2015, an interest subsidy scheme called the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (URBAN) - Housing for All, applicable to purchase, construct, extend and improve the houses for the Economically Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG). HDFC has whole-heartedly promoted and facilitated the implementation of this scheme due to which many families that had not owned a pucca house could see the dream of home ownership, materialise. The

Corporation has the largest number of home loan customers – of approximately 1 lac who have availed bene�ts under CLSS. As at March 31, 2019, cumulative loans disbursed by the Corporation under CLSS stood at ` 16,253 crore.

in May 2018, 340 employees of HDFC & HDFC Sales voluntered for “Shramdaan” in 3 drought prone villages in Maharashtra. The employees dug and ploughed using pickaxes and spades to create contour trenches, small dam and soak pits. Umtha, a village where the HDFC Nagpur team volunteered won the third prize in the Satyamev Jayate Water Cup 2018.

A blood donation drive was conducted at the of�ces of the Corporation during the year where employees of the Corporation participated whole-heartedly to support the noble cause.

HDFC also has in place a creche facility, at its head of�ce and branches for children of its female employees up to the age of three years.

1. Does the policy of the Corporation on human rights cover only the company or extend to the

group/joint ventures/suppliers/contractors/NGOs/others?

HDFC complies and adheres to all the human rights laws and guidelines of the Constitution of India,

national laws and policies and treats all its stakeholders and customers with dignity, respect and due

understanding. HDFC strives to be just, patient and understanding while dealing with delinquent

customers who have availed housing loans. HDFC has also put in place an internal culture and work

ethics where delinquent customers are treated with fairness.

HDFC upholds the principles of being an organisation that respects human rights, is non-

discriminatory amongst employees and provides for a redressal mechanism to the key constituents

that it deals with. HDFC’s Code of Conduct respects and promotes human rights.

Principle 5 BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS

12

13

While the key subsidiary and associate companies of the Corporation have their own independent

policies, they all respect and promote human rights.

2. How many stakeholder complaints have been received in the past financial year and what percent

was satisfactorily resolved by the management?

During the year under review, the Corporation did not receive any complaint in the nature of human

rights violation from any stakeholder.

1. Does the policy related to Principle 6 cover only the company or extends to the group/joint

ventures/suppliers/contractors/NGOs/others?

HDFC promotes ecological sustain ability and green initiatives such as recycling paper and other

waste material by having eco-recycle bins for electronic waste. Besides adopting energy saving

mechanisms, employees are sensitised towards making efforts to reduce the carbon foot print of the

Corporation.

Employees are encouraged to use electronic medium of communication as far as possible to reduce

usage of paper. During the year, HDFC employees participated in a tree plantation drive, upholding

the spirit that everyone’s footprint matters and everyone can help and play their part in protecting

the environment.

While the key subsidiary and associate companies of the Corporation have their own independent

policies, they all respect, protect and make efforts to restore the environment.

Yes.

3. Does the company identify and assess potential environmental risks? Yes/No

Further, on rural housing, HDFC does not allow use of asbestos sheets and encourages usage of

corrugated galvanised iron sheets. For low cost housing, HDFC encourages the NGOs to procure

environment friendly building materials from the local building centers. HDFC as a policy, �nances

only self-contained tenements which provide for toilets/sanitation within the housing unit. This leads

to a cleaner environment and reduces health hazards in the villages.

4. Does the company have any project related to Clean Development Mechanism? If so, provide

details thereof. Also, if Yes, whether any environmental compliance report is filed?

2. Does the company have strategies/ initiatives to address global environmental issues such as

climate change, global warming, etc? Yes/No. If yes, please give hyperlink for webpage etc.

During the year, HDFC has also supported community-based sanitation and solid waste management

programmes across India with experienced partners including Shelter Associates (Maharashtra),

Gramalaya (Tamil Nadu), Waste Warriors Society (Himachal Pradesh) and Mahila Housing Trust

(National Capital Region).

HDFC recognises the risks arising from climate change such as extreme weather conditions and its

impact on housing and therefore the ability of borrowers to service the loans.

Although the Corporation is cognizant of environmental related issues, it does not have any direct

project related to clean development mechanism.

In August 2018, employees of HDFC along with ‘Vasundhara Abhayan’, a NGO, successfully

completed the tree plantation drive in the vicinity of Tukai Hill near Pune.

Principle 6 BUSINESSES SHOULD RESPECT, PROTECT, AND MAKE EFFORTS TO RESTORE THE ENVIRONMENT

F O RT I E TH AN N UAL RE PO RT 2 01 6 -1 7

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• Federation of Indian Chambers of Commerce and Industry

• Confederation of Indian Industry

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency,

renewable energy, etc. ?

The Corporation complies with requisite environmental regulations in respect of its premises and

operations.

HDFC has extended �nance to gated community projects that promote the walk-to-work concept

and help to achieve work-life balance for the residents.

6. Are the emissions/waste generated by the company within the permissible limits given by

CPCB/SPCB for the financial year being reported?

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not

resolved to satisfaction) as on end of Financial Year.

The Corporation also encourages its retail customers to use digital services thereby reducing paper

prints and branch visits for availing services.

There were no show cause/ legal notices received from CPCB/SPCB during the �nancial year

2018-19.

1. Whether the company is a member of any trade and chamber or association? If Yes, name only

those major ones that the business deals with:

In line with the corporate strategy of conservation of the valuable resources and green initiatives,

HDFC makes an effort to support developers undertaking energy ef�cient real estate projects. Till

date, HDFC has �nanced around 50 real estate projects that have secured green ratings from Indian

Green Building Council, United States Green Building Council and Leadership in Energy and

Environmental Design.

HDFC is a member of inter alia the following chambers and associations:

• Bombay Chambers of Commerce and Industry

• National Real Estate Development Council

• US-India Investors’ Forum

• International Union for Housing Finance

HDFC will continue to support and advocate for the further development of housing industry, as its

primary objective is to enhance residential housing stock in the country.

• Indo-German Chamber of Commerce

Representatives of HDFC are members of the committees of these industry bodies. HDFC regularly

offers its inputs to these associations for the advancement and improvement of housing �nance in India.

• Bombay Management Association

• Indian Merchants’ Chamber

Principle 7 BUSINESSES WHEN ENGAGED IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A RESPONSIBLE MANNER

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to

Principle 8? If yes, provide details thereof.

The above, however, has been in the nature of using expertise to help shape public policy, primarily in

the areas of corporate governance, economic reforms and inclusive development, housing and

housing �nance. As such the Corporation does not take part in any lobbying.

HDFC makes various recommendations/representations before regulators and associations regarding

the new enactments that impact the Corporation, housing �nance industry and other related areas.

The Corporation also supported various programmes pertaining to the welfare of the differently

abled and also supported community based, holistic sanitation projects.

2. Has the Company advocated/lobbied through above associations for the advancement or

improvement of public good? Yes/No; if yes specify the broad areas (drop box: Governance and

Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food

Security, Sustainable Business Principles, Others)

Yes. HDFC undertakes a number of projects that are focussed on social development. In Financial

Year 2018-19, the Corporation promoted inclusive growth by focusing primarily on three social sector

areas, namely (I) Healthcare & Sanitation, (ii) Education, and (iii) Skilling & Livelihood. In Healthcare &

Sanitation, the key thematic areas supported were

(a) prevention, diagnosis & treatment of diseases,

(b) transformational surgeries & addressing malnutrition

amongst children, © safe drinking water & sanitation

programmes, and (d) programmes for leprosy, tuberculosis &

menstrual hygiene. In Education, the focus was on

(a) institutional support for educational institutions and

research, (b) holistic development of students, scholarships

and retaining children in schools, © teacher training &

development, and (d) special education for persons with

intellectual disabilities. In Skilling & Livelihood, HDFC

supported projects that focused on (a) rural livelihoods

(b) skilling of construction workers © vocational training &

skilling of persons with disabilities, and (d) women focussed

skilling & livelihood enhancement projects.

HDFC executives have, over the years, played a key role in formulating national housing policies and

strategies at a national level. Recognising HDFC's expertise, regulators, industrial bodies and

governments have invited HDFC's executives to join a number of committees and task forces related

to �nancial sector reforms, housing �nance, infrastructure development, capital markets and corporate

governance. Members of the senior management of HDFC are associated with various committees

constituted by the government, regulators and industry bodies from time to time including for the

purpose of legislating regulations related to capital markets and corporate governance.

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Principle 8 BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT

F O RT I E TH AN N UAL RE PO RT 2 01 6 -1 7

16

2. Are the programmes/projects undertaken through in-house team/own foundation/external

NGO/government structures/any other organisation?

3. Has the company done any impact assessment of its initiative?

Yes. The Corporation supports social sector projects that bring about transformative impact on the

lives of bene�ciaries. The number of bene�ciaries who have bene�tted, speci�c case studies and

assessment results are analysed in-depth for the Corporation’s social initiatives.

4. What is the company’s direct contribution to community development projects- Amount in INR

and the details of the projects undertaken?

Please refer to the Corporation’s Annual Report on Corporate Social Responsibility Activities 2018-19.

In Financial Year 2018-19, HDFC contributed towards the rebuilding efforts of homes in Kerala that

were severely damaged due to the devastating �oods in August 2018. HDFC has supported the

construction of 75 disaster resilient houses for families belonging to the lower socio economic

groups, in the worst affected villages of Kanayannur & Paravoor blocks of Ernakulam District and

Kuttanad block of Alleppey District. The project is being implemented through two local partners in

consultation with HDFC, local communities, technical consultants and the Panchayat (village local

governance) administration.

HDFC undertakes a large part of its social welfare activities through the H T Parekh Foundation

(a Section 8 company set by HDFC as a CSR initiative) which partners with exemplary NGOs.

5. Has the company taken steps to ensure that this community development initiative is successfully

adopted by the community?

Yes. Projects are designed based on the needs communicated by the community itself. They

regularly monitored through follow-up with the partnering organisation, site visits to monitor the

programme, consultations/ feedback from the community and progress reports that includes a

description of the activities undertaken by the project. Regular interaction with the partnering

organisation and the community has helped in ensuring that best practices are adopted and also

addressing any challenges for the successful implementation of such initiatives.

1 . What percentage of customer complaints/consumer cases are pending as at the end of the

financial year?

The Corporation has resolved 99.99% of complaints received from customers and 100% of investor

complaints received during the year.

HDFC continued to support sustainable, community driven sanitation programmes as well as

supporting programmes that provide access to safe drinking water in areas that have water scarcity

and high �uoride content. HDFC collaborated with the Ministry of Drinking Water & Sanitation for a

project to promote education and behaviour change in rural sanitation practices. HDFC also worked

with organisations focussed on waste management and recycling to ensure environmental

sustainability.

Principle 9 BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUETO THEIR CUSTOMERS AND CONSUMERS IN A RESPONSIBLE MANNER

Further, whenever the interest rates are changed by the Corporation, proper communication

informing the said change is sent to all the home loan customers.

4. Did the company carry out any consumer survey/ consumer satisfaction trends?

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices,

irresponsible advertising and/or anti-competitive behaviour during the last five years and pending

as on end of financial year? If so, provide details thereof.

HDFC also provides for a feedback mechanism on its website to allow stakeholders to leave their

comments/queries. Similarly, a response mechanism has been put in place for prompt response

to the queries, complaints and service requests of customers received through the social media

platforms.

HDFC is committed to providing effective and prompt service to its customers. The Corporation has

in place, a software called CREAMS to record and redress the grievances/ feedback from the

customers which helps in ensuring standard operating procedure and maintaining high service

standards.

Nil

HDFC has always believed in being transparent with its customers by providing all the relevant

details. HDFC also has document such as ‘Most Important Terms and Conditions’ which is displayed

prominently in each of�ce with information on service charges, interest rates, product information,

service standards for various transactions and grievance redressal mechanisms.

2. Does the company display product information on the product label, over and above what is

mandated as per local laws? Yes/No/N.A./Remarks

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Housing Development Finance Corporation Limited