About Company

• The Company was incorporated as ‘HDB Financial Services Limited on June 4, 2007, at Ahmedabad. The RBI granted a certificate of registration dated December 31, 2007, to the Company to carry on the business of a non-banking financial institution without accepting public deposits.
• HDB Financial Services is the 7th largest, diversified retail-focused non-banking financial company (“NBFC”) in India in terms of the size of the Total Gross Loan book, at ? 902.2 billion as at March 31, 2024, amongst its NBFC peers. The Company is categorised as an Upper Layer NBFC (“NBFC-UL”) by the RBI and is registered with the IRDAI as a corporate agent (composite).
• The company’s lending products are offered through its 3 business verticals: Enterprise Lending, Asset Finance and Consumer Finance. As at March 31, 2025, Enterprise Lending, Asset Finance and Consumer Finance accounted for 39.30%,38.03% and 22.66% of its Total Gross Loans, respectively.
• The products and financial services are offered through a wide omni-channel “phygital “distribution network. As at March 31, 2025, the company had a pan-India network of 1,771 branches in 1,170 towns and cities across 31 States and Union Territories.
• HDB Financial Services is India’s 2nd largest and 3rd fastest growing customer franchise amongst its NBFC peers, and it has served 19.2 million customers as at March 31, 2025. The customers have grown at a CAGR of 25.45% between March 31, 2023, and March 31, 2025.
• The company’s Return on Assets of 2.16% and Return on Average Equity of 14.72% for FY 2025 are the 7th and 5th highest amongst its NBFC peers, respectively.
• The company has a diversified liability franchise supported by a strong credit rating of AAA stable by CRISIL and CARE, which is the highest that can be assigned on the credit rating scale for any NBFC in India.
• The company’s interest income has grown at a CAGR of 24.49% from ? 8,927.78 Cr during FY 2023 to ? 13,835.79 Cr during FY 2025, driven by a growing yield on the Total Gross Loan book, from 13.59% in FY 2023 to 14.04% in FY 2025.  The company’s profit after tax increased from ?1,959.35 Cr in FY23 to ? 2,175.92 Cr in FY 2025, reflecting a CAGR of 5.38%.
• As at March 31, 2025, the GNPA and NNPA stood at 2.26% and 0.99%, respectively, which are the 4th and 5th lowest amongst its NBFC competitors, respectively.

Strengths

Competitive Strength 

• Highly granular retail loan book, bolstered by a large and rapidly growing customer base with a focus on serving the underbanked customer segments;
• Large, diversified and seasoned product portfolio with a sustainable track record of diversification, growth and profitability through the cycles;
• Comprehensive systems and processes contributing to robust credit underwriting and strong collections;
• Advanced technology tools driving enhanced customer experience and efficiency across each stage of the customer lifecycle;
• High-quality liability franchise with access to low cost, diversified borrowing sources and the highest credit Rating;
• Track record of robust financial performance with sustainable and profitable growth;
• Stable, highly experienced and professional management team supported by a talented workforce;
• Distinguished parentage of HDFC Bank, India’s largest private bank, enjoying strong trust and brand equity with consumers

Business Strategies 

• Diversify and expand the addressable customer segments by widening and enhancing product offering;
• Continue to expand the pan-India omni-channel distribution network;
• Continue to invest in technology, data analytics and artificial intelligence to further improve customer experience, increase organizational productivity and decrease costs;
• Continue to diversify the borrowing profile to optimize borrowings costs;
• Further strengthen and improve the robust risk management framework as well as underwriting and collections capabilities to minimise the risk of credit losses;
• Continue to attract, upskill and retain talented employees by strengthening the organizational culture.

Company Promoters

Company Financials

HDB Financial Services Limited's revenue increased by 15% and profit after tax (PAT) dropped by 12% between the financial year ending with March 31, 2025 and March 31, 2024.

Objects of the Issue

Augmentation of the Company’s Tier – I Capital base to meet their Company’s future capital requirements including onward lending under any of the Company’s business verticals i.e. Enterprise Lending, Asset Finance and Consumer Finance.