HDB Financial Services (HDBFS) is a leading non-banking financial company (NBFC) that caters to the growing needs of an Aspirational India, serving both Retail & Commercial Clients. Hdb finance is a subsidiary company of HDFC Bank. HDB Finance Services shares are in demand due to upcoming IPO. The current product portfolio consists of three main categories i.e. Loans, Fee-based products, and BPO services. HDBFS latest live share price today is currently about Rs 610 – 620 per equity share and is negotiable as per quantity.
hdfc share price is rising regularly and same can be expected from this company also. Share prices of HDFC Bank, HDFC Ltd shares, HDFC Asset Management Company, HDFC Life Insurance are rising steadily in market.
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Brief Summary – HDB Financial Services is a fully owned subsidiary of HDFC Bank with the latter holding 95% stake in the company. HDB Fin offers a wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. HDFC Bank is seeking greater regulatory clarity on holding its stake in HDB Fin as it looks to merge with parent HDFC.
HDB Financial Unlisted Share Details
Unlisted Share Price: Rs 610 – 620 per equity share negotiable as per quantity
Face value: 10
ISIN: INE756I01012
CIN: U65993GJ2007PLC051028
PAN: AABCH8761M
Registered office: Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad – 380 009
Phone.: +91 79-30482717 Website: http://www.hdbfs.com Email: compliance@hdbfs.com
History & profile:
HDB Finance Services Ltd was incorporated in 2007 by HDFC Bank. The company is engaged in the business of financing, collection, and insurance services. HDBFS also carries a Business Process Outsourcing (BPO) business and provides back-office processing services. The company is also engaged in the business of marketing and promotion of the various financial products. It distributes general and life insurance products for HDFC Ergo General Insurance Company and HDFC Standard Life Insurance Company.
HDBFS is a wholly owned subsidiary of HDFC Bank which holds 95.87% of equity shares. The product portfolio of the company consists of loans (secured and unsecured), asset finance (commercial vehicle, construction equipment & tractor loans), sales finance, fee-based products (insurance services) and BPO services. The company has 1151 branches in 815 cities in India and has its data centre at Bengaluru and centralised operations in Hyderabad and Chennai.
hdb bank is ranked 6th among top Non-Banking Financial Company (NBFC) in India. The company has been reporting strong financial performance. Its revenue and net profit has grown at about a scorching pace of 40% CAGR over the past three years.
HDB enjoys high ratings among NBFC companies. CARE Ratings Limited (CARE) and CRISIL Limited (CRISIL) have assigned CARE AAA / Stable and CRISIL AAA / Stable. ratings to the various facilities availed by the company.
The Housing Development Finance Corporation (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
Lending
HDBFS offer a wide range of secured and unsecured loans to customers. It provides a one-stop-shop for all requirements, be it loans, investments or protection. It has quickly grown to have more than 1000 Branches spread across 22 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. It also delivers front office services such as Contact center management, Outbound marketing and collection services.
Parent Company
HDB Financial Services Limited is a subsidiary company of HDFC Bank. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
Top management of the company
| Name | Designation |
|---|---|
| Mr. Aditya Puri | Chairman & Non-Executive Director |
| Mr. Jimmy Tata | Non-Executive Director |
| Dr. Amla Samanta | Independent Director |
| Ms. Smita Affinwala | Independent Director |
| Mr Venkatraman Srinivasan | Independent Director |
| Mr Adayapalam Viswanathan | Independent Director |
| Mr G. Ramesh | Managing Director & Chief Executive Officer |
The composition of the Board is as follows:
| Sr. No. | Name of Director | Designation |
|---|---|---|
| 1 | Mr. Arijit Basu | Chairman and Non-Executive (Non-Independent) Director |
| 2 | Mr. Venkatraman Srinivasan | Independent Director |
| 3 | Ms. Smita Affinwalla | Independent Director |
| 4 | Dr. Amla Samanta | Independent Director |
| 5 | Mr. Adayapalam Kumaraswamy Viswanathan | Independent Director |
| 6 | Ms. Arundhati Mech | Independent Director |
| 7 | Mr. Ramesh Ganesan | Managing Director & Chief Executive Officer |
HDFC Bank – HDFC merger
The HDFC Bank merger with its parent HDFC Ltd – which will take another 12-15 months to complete, provided all the regulatory approvals are in hand – is likely to produce a behemoth in the financial services industry.
In an interaction with analysts, Sashidhar Jagdishan, MD and CEO of HDFC Bank, waxed eloquent about future business prospects, adding almost breathlessly that the bank’s merger with parent HDFC Ltd will double profits in the next five years.
Financial Performance Update – FY 2022
HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-banking finance company (‘NBFC’) offering wide range of loans and asset finance products to
individuals, emerging businesses and micro enterprises. As on March 31, 2022, the Bank held 95.0% stake in HDBFSL.
For the year ended March 31, 2022, HDBFSL’s net revenue grew by 13.0% to ₹ 7,980.8 crore (as against ₹ 7,061.8 crore in the previous year). Profit after tax for the year ended
March 31, 2022 was ₹ 1,011.4 crore compared to ₹ 391.5 crore in the previous year, a growth of 158.4%.
The total loan book was ₹ 61,326 crore as on March 31, 2022. Stage 3 loans were at 4.99% of gross loans. As on March 31, 2022, total CAR was at 20.2% with Tier-I CAR at
15.2% and Liquidity coverage ratio at 102%.
As on March 31, 2022, HDBFSL had 1,374 branches across 989 cities / towns.
The total advances were ₹ 61,326 Crores of which 76% were secured. Disbursements are picked up in Q4 growing 11% quarter-on-quarter basis and 7% year-on-year basis.
HDB remains well capitalized with total capital adequacy ratio at 20.2% and Tier-1 capital adequacy of 15.2%. LCR was at 102%.
Investment rationale
HDB Financial Services has strong loan book spread across three major segments namely consumer loans, enterprise loans and asset finance. The company focuses mainly on asset financing, which includes commercial vehicle, commercial equipment and tractor loans.
Similarly, the company is further expanding into consumer durable financing, digital product loans, consumer durable financing and related segments. Though the company has traditionally focused on the self-employed segment in non-metros, it has now widened its reach to metro regions.
The loans-against-property segment was the second-highest contributor to HDBFS’s total loan book. Unsecured business loans and other secured loans make up the rest of the book. Hence, the overall quality of the loan book remains strong.
HDB Share Price is likely to trend higher as it benefits from HDFC’s nationwide presence, network, brand recognition, and has the advantage of leveraging the expertise of the bank’s senior management who are represented on the board of the company. NBFC is one of the fastest growing sectors in India. HDB Finance Services Share Price will command premium valuations compared to its peers due to its ability to manage asset quality.
With upcoming IPO in pipeline, HDB Financial Share Price is expected to remain firm due to strong brand name, quality management, robust business model and steady growth rate.
Latest news and developments
- Will think on IPOs of HDB Financial Services after merger with HDFC: HDFC MD 17 July 2022
Sashidhar Jagdishan said the initial public offering (IPO) plan for HDB Financial Services depends on the merger process. HDFC Bank will be looking at the public listing of its non-bank finance company subsidiary after its merger with parent HDFC Ltd goes through, a top official said on July 16.
The $40 billion merger between HDFC Bank and HDFC, billed as the largest deal in corporate history, was announced in April. It is expected to take up to 18 months to complete.
- Q3 Financial Results – Turnaround performance
HDB has posted a net profit of Rs 304.1 crore in the third quarter ended December 2021 (Q3FY22). It had posted a loss of Rs 146.2 crore in the same quarter last year (Q3FY21). Sequentially, net profit rose over 50% when compared to Rs 191.7 crore reported in the second quarter ended September 30, 2021 (Q2FY22).
Its gross non-performing assets stood at 6.05 per cent at end of December 2021 as against 5.9 per cent (pro forma basis) a year ago and 6.1 per cent in September 2021.
- HDB Fin Services now valued at Rs 90,000 crore in unlisted market : Economic Times 12-12-2019
Aditya Puri-chaired HDB Financial Services is trading at a valuation of Rs 90,000 crore in the secondary market for unlisted shares.
- HDB Financial Services partners with Ashok Leyland: Times of India 03-12-2019
HDB Financial Services Limited has signed a memorandum of understanding (MoU) with commercial vehicle manufacturer Ashok Leyland to enter into a strategic financing partnership for two years. This MoU will enable both HDB and Ashok Leyland to offer customised financial solution to customers across India, including semi-urban and rural areas, wherever Ashok Leyland and HDB Financial Services have presence.
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Cheer up! This NBFC IPO from HDFC Group to spark investor interest: Business Today 4 July 2019
If one takes Bajaj Finance as a proxy, the most optimistic valuation of HDB Financial could be close to Rs 80,000 crore. Initial public offerings (IPOs) from all large and well-respected groups spark investor interest not only for quick listing gains but also for long-term value investment. Deepak Parekh-managed HDFC Group is one such group in the financial services space that has rendered mega returns with complete safety of investments.
In fact, the group’s listed companies in insurance, banking, mutual fund and housing finance spaces have always shown best corporate governance practices, attracting institutional interest, especially from foreign investors. Currently, HDFC, HDFC Bank, HDFC Life and HDFC AMC are four listed group companies with a combined market capitalisation of Rs 12 lakh crore.
- HDB Financial: Is HDFC Bank’s ‘Mini-Me’ On The Fast Track To Growth? 29 May 2019
Looking at pre-listing trades in the grey market, investors are valuing the company at closer to $11.2 billion, Bernstein analysts said.
Read our media coverage on HDB Financial
HDB Fin gets Rs 80,000 crore valuation in grey market: Economic Times dated 28 June 2019
HDB the new billion dollar baby? Economic Times dated 26 July 2017
https://economictimes.indiatimes.com/markets/stocks/news/hdb-the-new-billion-dollar-baby/articleshow/59778050.cms
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