Company: Housing Development Finance Corporation Ltd
Income 2005-2006 = Rs 3500 Cr (rounded off)
Net profit after tax (05-06) = Rs 1000 Cr (rounded off)
Karmayog CSR Rating- 4/5
CSR activities:
The social responsibility function at HDFC is not just restricted to a few specialists or narrowly defined set of activities packaged somewhere out of sight. It is a daily part of what the company strives to be: responsive,imaginative and sensitive in the way we treat our customers, business associates, shareholders, employees and the wider world in which we operate. The brief accounts of select grants from the Shelter Assistance Reserve and other initiatives described in the following pages are suggestive of our approach.The year 2005-06 marked a decade of HDFC’s varied initiatives in the area of micro-finance with continued bulk-lending operations towards micro-enterprises and low-income housing. The year also saw India facing a terrible succession of natural calamities, from the floods in Mumbai and other parts of Maharashtra to the earthquake in the Himalayan region of Kashmir. HDFC joined hands with local level organisations to provide relief to the victims in the affected areas. In each case, the spirit and response of the people involved was characteristically generous and inspiring.
Shelter Assistance Reserve
During the year, HDFC extended support towards several social causes resulting in an overall utilisation of Rs. 476.56 lacs from the Shelter Assistance Reserve. This involved the funding of numerous development initiatives by way of grants to over 150 partner NGOs.The segment-wise break-up of the utilisation is highlighted in the chart below.Cited below are a few examples of projects funded by way of grant support out of the Shelter Assistance Reserve during 2005-06:
Anandwan – A way of life
It is said that there is no greater force in the universe than the one that drives the human spirit. Anandwan is a living epitome of the sheer dominance of the human spirit over an overtly misunderstood and stigma associated disease viz. leprosy. A township(just off the Nagpur-Chandrapur highway)set up almost five decades ago by the non agenarian Gandhian activist Shri Murlidhar Devidas alias Baba Amte, Anandwan is synonymous with the welfare and settlement of persons afflicted by leprosy who are cast away by their families and society due to the shame and dishonor linked with this disease. Over a period of time the township has extended its humanitarian activities to any individual suffering from a physical handicap who is discarded by society.
Today, the township accommodates nearly 5000 inmates who are either leprosy inflectedor suffer from some physical handicap. These inmates are encouraged to lead a normal life and become self-reliant by way of gainful employment in a plastic re-cycle project and as agriculturists tending to the fields where cotton and wheat is grown.Residential units, which were built for the seinmates nearly 45 years ago, are now in a dilapidated condition and some of these,need to be reconstructed entirely. HDFCalong with Sir Ratan Tata Trust has joined hands with the Maharogi Sewa Samiti (a trustfounded by Baba Amte) for part funding of the reconstruction and retrofitting expenses.
Kinship for children�
SOS Children’s Villages of India is a part of the worldwide SOS Children’s Village movement present in 131 countries across the world. SOS provides orphaned childrena closest alternative to a natural family i.e. a SOS family where they find the sanctuary of a home and a family to grow up with. Within the security of a family, children can grow-up into independent and responsible citizens of society. An SOS family typically consists of 9 or 10 children who live together with their ‘SOS Mother’ in a family home. Each Village has between 10 to 20 family homes.
SOS Children’s Villages of India has 34 Children’s Villages and 122 allied projects including facilities for Tibetan children. The organisation provides direct care to 15,000 children through its children’s villages and indirect care to nearly 200,000 children through various community programmes.
SOS has recently started the ‘Corporate for Child’ partnership where in the donor company can make a commitment towards adopting the education, health (including nutrition) and living expenses of an SOS family. HDFC has partnered with SOS Indiain adopting two families living in the SOS Children’s Village at Faridabad.
Ramakrishna Mission Students’ Home
The Students’ Home – Chennai which was established in 1905, is one of the oldest social service organisations in India and is a part of the Ramakrishna Mission, West Bengal.Originally the Mission had started a centre in Chennai to cater to the needs of orphaned and destitute boys. Free boarding and lodging was provided to the children but as the numbers grew the Mission decided to set up a Residential High School. Along with academic training the school also started providing vocational training and has now developed into a Residential Technical Institute.
Currently the Home provides boarding, lodging and education to 400 orphaned /destitute boys in the age bracket of 10-19.As part of its centenary, the school wants to add two new courses to the existing syllabus- Mechanical Engineering and Computer Technology. With the increase in the number of students attending the courses, the Home is building additional hostel facilities. HDFC has taken up the boarding and lodging expenses of the new students for a period of two years.
Childline @ Ten Nine Eight
A phone number that spells hope for millions of children across urban India(mostly the vulnerable ones on the street) -CHILDLINE is a 24-hour, free, emergency phone service for children who are in need of any aid or assistance. Any concerned adult or a child in need of help can dial 1098, the toll free number to access Childline’s services across the country. Childline responds not only for emergency needs but also links the children to services for their long-term care and rehabilitation.
HDFC has partnered with Childline to support the extension of their existing center in Goa.Being a large tourist destination, Goa attractsa large number of foreigners and thereby increases the threat of child labour, paedophilia and child abuse, child trafficking etc. The existing Childline center works out of Panjim responding to calls made in and around North Goa. With the shift in migrant population to South Goa, the center saw the number of calls coming in from South Goa increase. It became difficult for the existingcenter to reach the child within the hour hence an extension of the center was required. HDFC has committed to partnering with Childline on this project for a period of 3 years.
Ngo Mela 2005
Concern India Foundation has been organising NGO Melas (trade fair / exhibition)every year since 1995. This large-scale event serves as a platform for NGOs to present themselves, market their products and create awareness on their work. The Melas include demonstrations of various arts and crafts by skilled artisans who are otherwise unable to reach their products to the metropolitan clientele. The event also helps raise much needed financial resources for NGOs from across the country and enables them to network with each other while exposing them to a competitive market scenario.
This year, the NGO Mela was organised in Mumbai with HDFC as the main sponsor. Over 100 NGOs from all over the country participated in the event. These included NGOs working with youth, destitute children, women in distress, disabled persons, tribal communities and on issues such as environment, rural livelihoods etc.
Self-reliance Thru’ Skills & Training
The SPJ Sadhana School housed at Sophia College, Mumbai has been training physically and mentally handicapped students to develop their learning and basic skills over the last 32 years. A team of highly trained teachers and professionally qualified therapists, each of whom has hands on experience, look at making the best use of the capabilities and skills of the students -such as nurturing the special talents each individual manifests and encouraging him/her to work on them.
Years of such experience have crystallised into a five-year vocational course, which, while tapping a trainee’s special gift and fostering it, aims to equip that student to be launched into a self-reliant and productive life. The course covers training in art and crafts, tailoring, fast-food cookery and office. skills. Some of the projects of the SPJ Sadhana School have successfully metamorphosed into separate entities now operating as sister concerns, namely (i) The Shraddha Charitable Trust and (ii) Om Creations.The Shraddha Charitable Trust is a workshop providing productive support and training to students who have passed out of Sadhana School and takes pride in producing eco-friendly items only. The autistic adults receive intensive training for income-generating activities including sticking, painting, packing, sorting etc. and are then integrated into the workshop as full time workers for products ranging from bags to office folders to paper weights and several other household items.The Om Creations on the other hand is a pioneering project of the Sadhana School for the girl students. Om Creations has a’Catering section’ wherein the students are trained to make cookies, biscuits, pickles, sweets and other snacks with the help of instructors. The Trust also has an ‘Art & Craft section’ wherein a variety of articles like handbags, gift bags, napkins, mats, jewelry pouches, trays, plates, mugs etc. are made.
These items are bought by retail department stores, grocery shops, corporate bodies and individuals and a part of the sales proceeds goes back to the adults giving them a sense of economic independence. HDFC has been regularly supporting the SPJ Sadhana School and its two sister organisations by providing grant funds towards their programme and infrastructure expenses and sponsoring their fund-raising events.
EMPLOYEE INITIATIVES
Run Mumbai Run� and it did!!
Some ran with spirit, some with determination and some with causes but all with a heart. Seasoned athletes and puffing minnows alike hit the tarmac with a bang at the 3rd Mumbai Marathon held on January15, 2006. This year, the marathon saw the pounding of nearly 30,000 pairs of feet, setting the cash registers ringing. The event raised money for over 100 charities with the committed amount reaching close to Rs. 5 crore.
Not to be left behind was team HDFC. A majority of the Mumbai region staff (148employees, almost twice of last year) and some with their families and friends participated in the Dream Run of 7 Km in support of two Mumbai-based NGOs – ALERT India and Childline India Foundation.
Aids Walk for Life
�13 States
�300 cities
�Over 6,000 Kms
�36 exemplary individuals
�Over 2 million educated on an oft-misunderstood and stigma associated disease
After covering 6,800 Kms across thirteen states in the country, “The AIDS Walk for Life” reached its pinnacle in New Delhi.Today, more than 5 million people in India are infected with HIV/AIDS. Yet, very little is known about the disease. On December 1,2005 – World AIDS Day, our HDFC Delhi team joined the 36 heroes in propagating awareness creation for combating HIV/AIDS.The Walk is a unique and theatrical way of spreading awareness in the interiors of the country where conventional awareness campaigns may not penetrate. HDFC is proud to be associated with Project Concern India as a corporate sponsor supporting the cause of AIDS awareness.
Origami – Moulding Paper into Life
Paper is a very versatile and ubiquitous medium. All of us, without an exception have at some time or another folded a piece of paper and transformed it into something that must have given us immense pleasure at that time. Unknowingly we were practicing theart of ORIGAMI. India was selected to host the Origami Peace Tree Festival 2006 through the Origami Mitra (an association of Origamienthusiasts). HDFC joined hands with Origami Mitra inconducting Origami Workshops for visually impaired children of the NAB Workshop for the Blind and mentally challenged children of the S. P. J. Sadhana School. The children were able to visualize the immense scope of this ancient art by merely using their two hands as tools without having to resort to glue or scissors.
HDFC’s Little Indian Idols
The challenge was in chalking out a programme that stimulates a child’s creative instincts and provides the children with a platform to showcase their talent. HDFC did just that by holding a creativity-cum-talent workshop for primary school children in Nerul, Navi Mumbai. The workshop was a 2-day programme with professional facilitators that packed in a mini-theatre workshop, a”create wealth from waste” competition, story telling, painting and much more for over 140 children.
A painting competition was organised by our Dhule office for 5th and 6th standard students. Over 400 students participated in this contest helping young minds give vent to their imaginations.
HDFC participated in the ‘Fun Day Out’ kids’extravaganza in Pune by organising a colouring competition for children. The Pune office organised an exhibition of these drawings and felicitated every participant.
RESPONDING TO NATURAL CALAMITIES
Terrible Tuesday
Mumbai – the financial capital of the country, the city that never stops nor sleeps – and yet the metro was thrown into complete chaos on July 26, 2005. Heavy and incessant rains set off floods and landslides battering normal life and forcing rail, road and air traffic to a virtual standstill. Millions of citizens were affected – stranded for hours, even days at railway platforms, offices, in traffic jams -while others waded through chest-deepwater to reach their destinations. The record 944 mm of rains that lashed the metropolis took the death toll to over 1000. The city’s low-income working class, living in slumsand shanties, watched helplessly as their homes disappeared under water.
In spite of this catastrophe, the Mumbaikar spirit was clearly visible in every nook and corner of the city with people coming out to aid those stranded on the road through the night. HDFC partnered with famous singer Ms. Usha Uthup to capture this never-say-die spirit of Mumbai through the video’Mumbai Meri Hai’. The song encapsulates the Mumbaikar spirit of reaching out in times of need and rising back with full zeal and enthusiasm in spite of the adversities.
Not to be left behind was our Mumbai region staff. A collection drive for relief material was organised immediately after the disaster through our Churchgate, Parel and Vashi offices. Our staff donated wholeheartedly to this cause. The relief material was distributed to flood-affected families in the slums of Mumbai and Navi Mumbai through local NGOs having a strong community presence.HDFC was also able to obtain medicines from GlaxoSmithKline, which were distributed among NGOs conducting health camps in various slums and low-income neighbourhoods in the city.
Further, HDFC extended grants to several NGOs coordinating relief and rehabilitation efforts in various parts of Mumbai and NaviMumbai. The relief process included provision of dry ration, potable water,emergency medical aid, provision of blankets and plastic sheets etc. HDFC partnered with the Sir Ness Wadia Foundation and The Bombay Community Public Trust to provide education material (specifically note books, uniforms and stationery) to municipal school children in the severely affected areas.
Kashmir EarthquakeAn earthquake of magnitude 7.6 struck the Himalayan region of Kashmir on October 8, 2005 resulting in colossal loss of life and property in Pakistan as well as India. On the Indian side, it is reported that the disaster left more than 1300 people dead and some 2500 injured, while over 1500 were missing. Through our Jammu, Ludhiana and Chandigarh offices, HDFC provided relief material in the form of blankets, pulloversand milk powder for the immediate needs of the victims of the earthquake. In this initiative, HDFC partnered with Childline India Foundation (CIF) and their partner organisation Youth Technical Training Society(YTTS), Srinagar. YTTS worked very closely with the Indian Army in planning and carrying out the relief measures. The packaged relief material was transferred from Ludhiana to Chandigarh from where it was airlifted to Jammu.
HDFC also partnered with The SOS Children’s Villages of India, who had already started emergency relief work for families with a primary focus on children. SOS has offered (with the willingness of the J&KGovt.) to undertake long-term care of 100 orphaned children from this tragedy through their existing SOS village in Srinagar.Contribution from HDFC’s employees and a matching grant from HDFC have helped further SOS’s commitment for long-term rehabilitation of orphaned children in Kashmir.
SELF HELP VIA CREDIt RURAL HOUSING SCHEME FOR EWS
Women’s Welfare Association
Women’s Welfare Association (WWA) is a renowned NGO, which has been serving rural poor in the Wayanad district of Kerala since 1978. WWA promotes integrated people-centred rural development for improving the quality of life and the living conditions of village communities irrespective of caste, creed and political leaning. Women from different walks of life are members of its General Body.
HDFC has been associated with WWA since 2003 in the area of housing loans to the economically weaker section (EWS) households. HDFC has sanctioned threehousing loans amounting to Rs. 134 lacs for onward lending to the members of WWA.The cumulative disbursement as onMarch 31, 2006 stood at Rs. 98.62 lacs for construction of 219 dwelling units. With the active involvement of all the stakeholders including the beneficiaries, WWA project staff and HDFC officials, the “ABHAYA housing project” has become a steppingstone to achieve the goal of housing for allin Wayanad district.
The implementation of the scheme is being carried out in three phases – the preparatory stage followed by physical implementation and development of appropriate recovery mechanisms. In the preparatory stage, WWA gives emphasis on “Save and Build” concept.The beneficiaries mobilise their own contribution towards the house construction by way of small thrifts or savings, which ultimately helps WWA to select the beneficiaries in accordance with the basic principles of credit, viz. – character, capacity and capital. The orientation given by the HDFC officials also helps to generate transparency and a clear understanding about the housing loan products. There payment of the loan is structured based on affordability of the WWA members and the recovery mechanism is also being developed in a participatory way.
Voice from Mrs. Sainaba, one of the project beneficiaries….”We have lost our property which was mortgaged for the treatment of our son and we have been residing in arented house, giving Rs. 750/- per month for the last four years. With the support of WWA, we have got Rs. 54,000/- from HDFC and we could construct a small house. I am glad that the loan which I could never dream of getting, as per advice from other banks has now been granted to me by HDFC within the shortest period and I find it much convenient to pay Rs. 581/- as monthly payment to HDFC”.
FORUM FOR RURAL ENVIRONMENT AND ECONOMIC DEVELOPMENT (FREED) was established in1992 as an innovative programme in micro-finance to promote livelihoods with a special emphasis on environment protection and ecological preservation. It has a strong client focus and its products and delivery systems have been designed accordingly. FREEDoperates in Alappuzha district of Kerala withover 13,000 active borrowers.
FREED first approached HDFC during 2004 to obtain a housing loan for its members for new construction. HDFC sanctioned Rs. 54 lacs for onward lending to 100 members. The successful implementation of the”GRAMASREE housing project” within a period of six months paved the way for sanctioning of two more housing loans amounting to Rs. 129 lacs and a micro-finance loan of Rs. 25 lacs. As of March 2006,FREED has availed a total disbursement of Rs. 149 lacs from HDFC.
Unlike most MFIs in India, FREED has not appointed field officers to transact directly with the clients. Instead, it works through the leaders of their SHG federations, which fosters transparency and a sense of ownership among the members. The operational strategy developed inconsultation with different stakeholders, especially with the HDFC officials, for the long-term housing loan product, has helped the organisation to implement the housing schemes in a systematic way.
The first site-visit report generated by the representatives of FREED provides a clear understanding about the borrower – extent of land, location sketch, type of house to be constructed, plinth area, total estimated cost, allocation of funds, application of cost reduction technologies, etc. The subsequent visits by HDFC officials to the project locations, helps in orienting the clients on various issues while advising them on certain”do’s and dont’s”. The action-reflection praxis at FREED has further led to evolving appropriate tools for better implementation of the scheme.
MICRO ENTERPRISE FINANCE FACILITYActivists for Social Alternatives
The Activists for Social Alternatives (ASA) commenced operations in 1986 as a facilitating agency for empowering the poorest of the poor women. During the course of its growth, ASA felt that economic development of women would be the strongest base for their social, cultural and political empowerment. ASA observed that the savings and credit program held the greatest potential for improving the economic status of large number of rural women. In 1993, ASA started adopting the essentials of Grameen principles and initiated a full-fledged micro finance program (meaning ‘Dawn of theRural Poor’) in Tiruchirapalli district.
ASA follows the Grameen Bank model and has evolved its products and delivery systems in accordance with the felt needs of the community. ASA-GV provides collateral-free credit to poor women organised in groups of five (known as Grameen Banking Groups) at the village level. These groups are federated into centres, each centre being constituted with 20 groups. The centres are further federated into branches. ASA-GV now operates in 11 districts of Tamil Nadu with 45 branches serving more than 90,000 members spread over 2,500 villages.
HDFC has been associated with ASA since 2002 when the first loan of Rs. 50 lacs was sanctioned under the micro-enterprise finance facility (MFF). The total loan sanctioned under MFF to ASA is Rs. 250 lacs for onward lending to 3000 members and the amount disbursed as of March 31, 2006 is Rs. 150 lacs. In addition, HDFC has sanctioned Rs. 200 lacs towards housing upgradation loans of which Rs. 100 lacsstood disbursed.
Through the provision of micro-finance and development services, ASA has empowered their women clients and improved their access to and control over financial resources. The following case is an illustration of the impact of ASA’s micro-finance initiative:
Lakshmi, aged 28 hails from a backward family and was unable to study beyond 4th standard due to intense poverty. She did menial jobs to support her family’s survival. It was at this juncture, that the ASA-GVmicro-finance program came to her rescue. Borrowing the first loan of Rs. 3,000, she purchased a sewing machine to support her parents and save money for her wedding expenses.She married Ayappan, a hired labourer of a cycle shop. Ayappan’s low income was insufficient for the family expenses. Here again, she sought the aid of ASA-GV and borrowed the 2nd loan of Rs. 7,000 which was invested in their cycle shop with 5 bicycles. Renting out these cycles, they earned Rs. 500 per week. After repayment of the 2nd loan, Lakshmi took the 3rd loanof Rs. 9,000 to purchase tape recorders, mike and sound system to be rented out for functions and weddings. Now she is a proud mother and is able to provide good education to her two sons. Lakshmi says “My life would have been in chaos if GV had not helped me”. Going for a 4th loan of Rs. 10,000 she has recently bought additional bicycles and also sells spare parts for them.
Evangelical Social Action Forum.
The Evangelical Social Action Forum (ESAF)was established as an NGO in 1992 by agroup of like-minded individuals, who shared the objective of working for the poor and marginalised sections of the society. ESAF undertakes various developmental activities, including micro-enterprise development, community development and rehabilitation, advocacy and vocational training. ESAF’s activities were entirely based in Kerala till 2003. In October 2003, ESAF started community development programmes in the Vidharbha region of Maharashtra and in the state of Chhattisgarh.
The micro enterprise development (MED)department, of which micro-finance is a part, is one of the key interventions of ESAF and its objective is to provide a package of financial and business development services to the socio-economically challenged. Besides micro-finance, MED is active in handicrafts promotion, training and marketing.
ESAF first approached HDFC in 2001 for an MFF loan of Rs. 20 lacs. It was a small beginning, but the outcome was a multi-faceted impact in the community. The members started thinking of initiating group enterprises and the same materialised through subsequent loans from HDFC. HDFC has sanctioned three MFF loans to ESAFamounting to Rs. 220 lacs of which Rs. 170 lacs stood disbursed as on March 31, 2006.
Women in business can sometimes find it difficult to assert themselves, but- a member of Jyothis Sangam, Kodungallur and her friends dared to poke into what we understand as a man’s stronghold. They collectively undertook concrete brick manufacturing with the support of credit made available to them by HDFC through ESAF. Subhashini and her friends found that coming together as a group helped them to be bold in their approach and to create athriving business.
“Our activity brings us happiness. Not only to us but to our clients and even to those who visit and see us.”says Subhashini. After finishing their household work they gather together ataround 11’o clock everyday and make more than 100 bricks in a day. Today, they stand as a group of 25 members having three enterprises viz, concrete brick manufacturing, goat rearing and mat weaving. Having availed loans of more than Rs. 2 lac, the group is proud to say that they have always been regular in repayment of their loans.
Amount spent on CSR : No information regarding the amount spent on CSR was available on the homepage .
Contact details : Housing Development Finance Corporation Ltd
Ramon House, 169, Backbay Reclamation,
H T Parekh Marg, Churchgate
MUMBAI – 400 020.
Tel: +91 (22) 66636000
Web address : www.hdfc.com
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Chairman’s Letter HDFC Ltd 31st Annual Report 2007-08
URL: http://www.hdfc.com/others/popup/about_us/annual2008/Chairman%20Letter.pdf