CRISIL

CARE

HDB Financial Services, a subsidiary of HDFC Bank, is planning to raise about Rs 2,500 crore of debt capital to support business growth. The subordinated debt is to the tune of Rs 2,000 crore while perpetual debt is nearly Rs 500 crore. After witnessing asset quality pressures in the aftermath of the Covid-19 pandemic, the finance company has improved its risk profile and health to support sustained growth in loan book.

HDB Fin Services to raise Rs 2,500 crore via debt capital for biz growth

As HDB Financial Services heads for its initial public offering (IPO), shares of the nonbank lender owned by the country’s most-valued bank in the unlisted market have seen a sharp rise — up to ₹1,200 apiece. After the IPO plan was announced, the shares rose to a high of ₹1,400 apiece before settling at ₹1,200. However, brokers in the unlisted market say the euphoria is not justified as they expect the IPO to be priced around ₹750-₹800.

IPO-bound HDB Financial stock soars in unlisted market

HDB Financial Services, the unit of India's largest private sector lender, HDFC Bank Ltd. reported its June quarter results, which was its first as a listed entity. Net profit for the quarter declined on a year-on-year basis, as did disbursements, which also declined compared to the March quarter. Net Interest Margins saw a marginal improvement compared to the same quarter last year. Asset quality saw deterioration with both Gross and Net NPAs rising from last quarter. Net Interest Income, or the lender's core income though, rose on a year-on-year basis. The stock had a very volatile trading session in the lead up to its earnings announcement, eventually closing with modest losses. Volumes though, were significantly lower on the stock, compared to the average volume over the last three sessions.

HDB Financial Services Q1 Results Highlights: Credit costs increase, asset quality deteriorates

HDBFS’s GNPA rose to 2.26% in FY25 due to early delinquencies, though asset quality remains controlled. Credit costs increased to 2.1%, and lower other income impacted RoA, which declined to 2.2% from 3.0% in FY24. Cost efficiencies provided partial offset.



The issuer has made timely interest payments.

Mr. G. Ramesh, MD and CEO	

Mr. Arijit Basu, Chairman

HDBFS holds strategic importance for HDFC Bank by complementing its product portfolio, expanding distribution, and supporting retail collections. The shared logo reinforces HDFC Bank’s moral commitment, while regular equity and debt funding underscores continued support.



HDBFS has a strong retail finance presence with ₹1.07 lakh crore AUM (March 2025), diversified across asset finance, mortgage, and unsecured loans. It’s expanding in consumer durables, gold, and digital loans, and has widened its reach to metros.

HDBFS has a strong capital position with 19.2% CRAR, ₹15,820 crore net worth, and stable gearing at 5.5x (March 2025). Healthy internal accruals and 14.9x net NPA coverage provide cushion, with support from HDFC Bank if needed.



Rating agency	Rating	Needle position
CRISIL	AAA Stable	near High Safety
CARE	AAA Stable	near High Safety

Security Name: 8.70% HDB Financial Services Limited (P) Call : 29 Nov 2029

ISIN: INE756I08207

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