HDBFS posted net profit of Rs 1153 crore for the year ended 31 March 2019. Profits were up 23.57 % for the year. The company has emerged as one of the larger players in the retail financing space over the past few years; Overall AUM has grown to Rs 55425 crore as on 31 March 2019
HDB Financial Services has loan book of around Rs 55,000 crores 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.
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. The overall quality of the loan book remains strong.
HDBFS 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. The company will command premium valuations compared to its peers due to its ability to manage asset quality.