HDFC Bank’s NBFC Arm, HDB Financial Services, Aims for IPO Launch in 2025
HDB Financial Services, HDFC Bank’s non-banking subsidiary, is gearing up for its Initial Public Offering (IPO) with plans to commence the process in the coming months. The bank’s Chief Financial Officer, Srinivasan Vaidyanathan, revealed that the IPO listing is targeted for September 2025. The bank aims to complete all necessary procedures in a timely manner.
HDFC Bank’s Dominant Stake
As of December 31, 2023, HDFC Bank holds a substantial 94.7% stake in HDB Financial Services. The IPO preparations include essential paperwork and the regulatory approval process with the Securities and Exchange Board of India (SEBI).
Robust Q3FY24 Performance
HDB Financial Services reported a commendable profit of ₹640 crore in the third quarter of FY2023-24, up from ₹500 crore in the corresponding quarter of the previous fiscal year. The company’s total loan book size witnessed significant growth, reaching ₹84,000 crore compared to ₹65,100 crore in the third quarter of the last fiscal.
Merger Impact and Future Strategy
In July 2022, HDFC Bank’s CEO, Shashidhar Jagdeesan, mentioned that the IPO plans for both HDFC Securities and HDB Financial Services were contingent on the progress of their merger process. As the IPO journey unfolds, HDB Financial Services aims to strengthen its position in the market.