HDFC Bank currently owns 94.6% in HDB Financial Services. The bank has announced a Rs 12,500 cr IPO of HDB.
- HDB incorporated in 2007, is a non-banking financial company (NBFC) that provides lending and business process outsourcing (BPO) services to individuals and businesses
- The lending involves both secured and unsecured loans and the BPO services include back office services like forms processing, document verification, finance and accounting services, and correspondence management, along with front office services like contact center management, outbound marketing and collection services.
- HDB’s total loan book was Rs 98,600 cr as of September 30, 2024, with Stage 3 distressed loans at 2.10% of the gross loans. Capital adequacy is at 19.3%.
- IPO is amid RBI mandate for the upper layer NBFCs to get listed
- In October 2022, the RBI had issued a circular requiring Upper Layer NBFCs, including HDB Financial Services, to list on stock exchanges within three years i.e., by September 2025.
- Of Rs 12,500 cr, Rs 10,000 cr will be offer for sales (OFS) by HDFC bank and balance Rs 2,500 cr will be fresh issue
“The price and other details of the proposed IPO will be determined in due course by the competent body,” HDFC Bank said.
Post-IPO, HDB Financial Services will remain a subsidiary of HDFC Bank, complying with the relevant regulations.