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HDFC: Pioneering India's Homeownership Dream

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  Published in House and Home on Tuesday, February 17th 2026 at 2:07 GMT by ThePrint
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Mumbai, India - February 17th, 2026 - The Indian dream of homeownership, now a tangible reality for millions, wasn't always within reach. A pivotal shift in the nation's financial landscape occurred thanks to the vision and determination of Deepak Parekh and the institution he built, Housing Development Finance Corporation (HDFC). Today, as India continues to urbanize and the demand for affordable housing surges, understanding HDFC's foundational role is more critical than ever.

Prior to the 1970s, the concept of a dedicated housing finance sector in India was nascent at best. Banks, constrained by prevailing regulations and a lack of understanding regarding long-term mortgage financing, largely avoided lending for home purchases. The very idea of mortgage-backed securities was foreign. This created a significant barrier for the burgeoning middle class aspiring to own their homes. The financial system simply wasn't geared towards facilitating long-term loans tied to real estate.

It was in this challenging environment that Deepak Parekh, then a rising executive at Chowgule and Company, recognized a critical gap in the market. He foresaw the immense potential of a specialized financial institution dedicated solely to housing loans. This wasn't merely about providing capital; it was about unlocking a fundamental societal aspiration.

In 1977, HDFC was established as a private limited company, marking the beginning of a revolutionary journey. Parekh was appointed as Managing Director and CEO - a role he skillfully navigated for over two decades. Under his leadership, HDFC didn't simply offer loans; it engineered an entirely new ecosystem for housing finance in India. This included pioneering innovative financing methods, meticulously modernizing lending practices to mitigate risk, and aggressively expanding its reach geographically, reaching far beyond the major metropolitan areas.

The initial years were fraught with difficulties. The Indian government, in the late 70s and early 80s, largely prioritized industrial and agricultural funding, viewing housing loans as a potential drain on resources that could be better allocated to 'productive' sectors. Parekh and his team weren't deterred. They engaged in persistent and persuasive dialogue with policymakers, demonstrating the multiplier effect of a thriving housing sector - job creation in construction, increased demand for building materials, and a boost to overall economic activity. This advocacy was crucial in gradually shifting government attitudes and fostering a more supportive regulatory environment.

One of HDFC's most significant contributions was the introduction of fixed-rate mortgages. In a time of high inflation and economic uncertainty, this offered borrowers a degree of predictability and peace of mind that was previously unavailable. This innovative product, coupled with a relentless focus on operational efficiency and exceptional customer service, quickly set HDFC apart from the competition. The company invested heavily in technology and processes to streamline loan approvals and disbursement, reducing turnaround times and improving the overall borrower experience.

Today, HDFC stands as a colossus in the Indian financial landscape. With a market share exceeding 20%, it is the largest housing finance company in the country. Its impact extends far beyond mere market dominance. HDFC has been instrumental in fostering a culture of homeownership, enabling millions of Indian families to achieve their dreams. Furthermore, the company's success has spurred the growth of an entire industry, with numerous other players entering the housing finance sector, all benefiting from the path HDFC blazed.

Parekh's influence extends beyond the walls of HDFC. He has consistently championed the cause of housing affordability and financial inclusion, advocating for policies that make homeownership accessible to a wider segment of the population. His insights and expertise are regularly sought by policymakers and industry leaders alike. In recent years, he's been a vocal proponent of utilizing technology to reduce costs and expand access to housing finance in rural and underserved areas.

The merger of HDFC with HDFC Bank in 2023 marked a new chapter, creating one of India's largest private sector banks and further solidifying its position as a financial powerhouse. While the structure has evolved, the core principles of responsible lending, customer focus, and a commitment to housing affordability - all hallmarks of Parekh's leadership - remain firmly embedded in the organization's DNA. The legacy of Deepak Parekh and HDFC is a testament to the transformative power of vision, perseverance, and a steadfast belief in the Indian dream.