HDB Financial Services (HDBFS) is a leading Non-Banking Financial Company (NBFC) that caters to the growing needs of an aspirational India, serving both individual & business clients. Incorporated in 2007, HDBFS is a well-established business with strong capitalization. HDBFS is accredited with CARE AAA & CRISIL AAA ratings for its long-term debt & Bank facilities and an A1+ rating for its short-term debt & commercial papers, making it a strong and reliable financial institution. Their line of business includes – Lending and BPO Services.

It issues various instruments including Term Loans, Line of Credits, Non-Convertible Debentures, External Commercial Borrowings and other market instruments. The Company has a diversified mix of investors which includes Banks, Mutual Funds, Insurance companies, Foreign Institutional Investors, Corporates, Provident Funds etc.

Lending: They offer a wide range of secured and unsecured loans to our customers. Also provide a one-stop-shop for all requirements, be it loans, investments or protection. They have quickly grown to have more than 1,492 branches spread across 24 States & 3 Union Territories.


BPO Services

BPO services division delivers back-office services such as forms processing, documents verification, finance and accounting services and correspondence management. They also deliver front office services such as contact center management, outbound marketing and collection services. HDB Financial Services Limited is a subsidiary company of HDFC Bank.

For NBFCs in upcoming years, it is expected to see a gradual and sustained improvement in their business. Sectors which have been laggards in revenue recovery are expected to pick up the pace such as airlines, hospitality, BFSI, IT, Infrastructures etc. Asset quality may pose a challenge for some NBFCs, which is determined by the behavior of their restructured book.

For any financial firm it is important to focus on their liquidity & mitigate the threat that arises from it. HDBFS managed to do so by maintaining their average LCR (Liquidity Coverage Ratio) for the quarter ended 30th June 2023 – 199.33% as against 168.22% for the quarter ended 31st March 2023 which is well above present prescribed minimum requirement of 70%.

Financial Highlights

  • The average HQLA (High Quality Liquid Asset) that can be En-cashed easily for the quarter ended 31st March 2023 was 1,061.33 crore as against 2,074.80 crore for the quarter ended 31st Dec 2022.
  • During the same period the composition of government securities in the HQLA was 85.79% for the quarter ended 31st, 2023 as against 88.10% for the quarter ended 31st Dec 2022.
  • HDBFS has posted total income and net profit of INR 11,306.29 crore and INR 1,011.40 crore, respectively, for the financial year ended March 31, 2022, as against INR 10,944.78 crore and INR 391.47 crore respectively, in the previous financial year.
  • Revenue from the lending business of the firm grew to INR 9,768.95 crore for FY’23, up by 9.23%.
  • Revenue from the BPO services division grew to INR 2,633.93 Crore in FY’23, up by 11.44%.
  • Company net profit surged to INR 1,959.35 crore in FY’23, up by 93.8%.
  • AUM increased by 14.06% during the same period.
  • Revenue generated for Q1’24 was INR 3,386.8 crore (lending contributed- INR 2,810.2 crore & BPO services – INR 576.6 Crore). PBT for Q1’24 was INR 760.5 crore whereas net profit for this period was INR 567 crore.

Financial Figures (INR Crores)

Particulars FY 2023 FY 2022 FY 2021 FY 2020 FY 2019
Total Revenue 12,402.88 11,306.29 10,944.78 10,756.47 8,724.81
PBT 2,627.40 1,347.56 500.71 1,464.48 1,724.06
PAT 1,959.35 1,011.40 391.47 1,004.85 1,153.24
AUM 70,084 61,444 61,561.00 58,833.00 55,245.00
Shareholder’s Fund 11,437 9,539.73 8,446.24 8,017.80 7,178.48
Borrowings 54,865 48,973.08 50,358.75 49,804.05 45,105.10
EPS 24.78 12.81 4.97 12.78 14.71
Book value per share 144.52 120.69 107.02 101.8 91.36

Half-Yearly Performance

Particulars H1 2024 H1 2023 Q2 2024 Q1 2024
Total Revenue 6,902.5 6,028 3,515.7 3,386.8
PBT 1,567.3 1,223.2 806.8 760.5
PAT 1,167.8 912.4 600.8 567
Debt Equity Ratio 5.41 5.48 5.41 5.38
Current Ratio 1.28 1.12 1.28 1.17
Profit Margin % 16.92 15.14 17.09 16.74
EPS 14.75 11.74 7.59 7.16

During this half yearly performance, Revenue mainly generated from interest income segment which contributes around 75% ~ INR 5,243.8 crore of total income INR 6,902.5 crore. It also registered a significant increase of 15% on YoY basis (H1’24 & H1’23) & 3% elevation on QoQ basis (Q2’24 & Q1’24).

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The NBFC industry is well positioned to contribute to the India’s growth & very recently were acknowledged by the RBI governor for their pivotal contribution in delivering credit to unbanked and underserved areas. The NBFC industry scope involves complementing and sometimes even substituting banks by widening the ambit and access to financial services. The increased credit availability has been a major factor in driving the enterprise in the country. Technology too played a significant role and has been a key enabler across the industry, largely enhancing user experience and easing out the whole process. With growing economy & government schemes for expanding the financial inclusivity is well poised for further growth of the NBFCs.


NBFCs need to remain alert to avoid any complacency during good times. RBI highlighted the need for further strengthening the governance standards and assurance mechanisms viz. Compliance, Risk management and Internal audit on a regular basis.

The increasing dependencies on bank borrowings can increase risks associated with high credit growth in retail segment mostly in unsecured.

Apart from that prioritising the upgradation of IT systems and cyber security is something needs to be often looked after.

Shareholding Pattern

Name of the Shareholder No. of Equity Share held Percentage (%)
HDFC Bank Ltd 75,05,96,670 94.84
Others 4,08,02,413 5.16
Total (Issued & Paid-up Shares) 79,13,99,083 100

Key Personnel

Mr. Arijit Basu - Chairman and Non-Executive Director

Mr. G Ramesh Ganesan - Managing Director & Chief Executive Officer

Mr. Jaykumar Shah – Chief Financial Officer

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