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HDFC's PESTEL Analysis Overview

This document provides a PESTEL analysis of the macroenvironmental factors affecting HDFC Housing Finance. It analyzes the political, economic, social, technological, environmental, and legal factors. The political environment has stable regulation from the RBI and NHB. HDFC has played a role in developing the credit bureau system. Economically, HDFC has improved profits during an economic slowdown by addressing housing shortages. Socially, HDFC is involved in community programs in education, healthcare, and empowerment. Technologically, HDFC utilizes automated systems and online connectivity. The housing finance environment has remained stable. Legally, steps have been taken to pass real estate reforms but bills are still pending.

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508 views2 pages

HDFC's PESTEL Analysis Overview

This document provides a PESTEL analysis of the macroenvironmental factors affecting HDFC Housing Finance. It analyzes the political, economic, social, technological, environmental, and legal factors. The political environment has stable regulation from the RBI and NHB. HDFC has played a role in developing the credit bureau system. Economically, HDFC has improved profits during an economic slowdown by addressing housing shortages. Socially, HDFC is involved in community programs in education, healthcare, and empowerment. Technologically, HDFC utilizes automated systems and online connectivity. The housing finance environment has remained stable. Legally, steps have been taken to pass real estate reforms but bills are still pending.

Uploaded by

worldontop
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Social
  • Political
  • Economic
  • Legal
  • Environmental
  • Technological

PESTEL Analysis

This analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management of HDFC Housing Finance. 1. Political i. The Housing Finance sector in India has been well regulated between RBI and National Housing Bank. And it is good to observe that HDFC has played a major role in facilitating the said. For instance, till the year 2000, there were no credit bureaus in India. HDFC had the privilege of being one the promoter of the first credit bureau in India. Today, with the help of HDFC, India has four well-established credit bureaus. In the Union Budget 2013-14, a further fillip was given to first time homebuyers who are now allowed an additional one-time benefit of interest deduction up to 1,00,000 INR on a home loan. Such incentive has reduced the effective cost of a home loan for a borrower.

ii.

2. Economical i. Even in this never-ending economic slowdown where manufacturing industry has been declining and the service sector is also no more in a good shape, HDFC (through its subsidiaries and consolidated companies), has been able to improve its profit from 13% in FY2010 to 23% in FY2013. HDFC along with other entrepreneurs has been able to fight the acute housing shortage in India even with the inflated the inflated home prices in Tier II and Tier III cities.

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3. Social HDFC continues its involvement in socially responsive actions primarily throughi. Vicharata Samuday Samarthan Manch (VSSM) works for the rights and welfare of nomadic & de-notified communities and aims to help mainstream these communities by enabling them to fight for their rights. Masoom is working towards improving the quality of education in night schools across Mumbai. In order to achieve this, Masoom partners with night schools to facilitate the 'Night School Transformation Programme'. Yuva Mitra has been working in the field of education, youth development and women empowerment for the last seven years in Sinner Taluka of Nashik. The activities of the organisation include creative methodology for children education and formation and development of self help groups engaging in savings and credit activities. Muskaan is a voluntary organisation of parents and professionals, established in 1982 providing comprehensive education, vocational training and work opportunities to young people who are mentally challenged.

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The Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), more popularly known as Jaipur Foot was set up in 1975 for helping the physically challenged, particularly the financially weak among them. Swadhar was established in 1995 in Pune with the main aim to work with women in distress and with underprivileged children. The emphasis is on ensuring their development through guidance, counseling, education and empowerment.

4. Technological HDFC operates in a highly automated environment in terms of information technology and communication systems. All the branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. HDFC has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class corporation. The use of interactive customer focused web-based tools has given HDFC an edge over its other competitors. 5. Environmental The environment for housing finance in India has been stable and this has put HDFC on a surer footing. Even when the GDP showed a slow growth rate, growth in individual home loans remained strong. HDFC made it important to safeguard the housing finance market and ensured that it continues to grow in a prudent manner. Given the conditions, future outlook for both housing finance industry and HDFC looks extremely promising. 6. Legal i. ii. Various steps have been made by HDFC to revive the Real Estate Bill but still it has been an unfortunate case of the proverbial one step forward, two steps back. The country is also not able to get the new Land Acquisition Act into action and it is still being debated, having been tossed over three different governments.

PESTEL Analysis This analysis describes a framework of macro-environmental factors used in the environmental scanning compo
v. The Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), more popularly known as Jaipur Foot was set up in 1975 for helping

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