HDB Financial Services Ltd IPO

Highly granular retail loan book, bolstered by a large and rapidly growing customer base with a focus on serving the underbanked customer segments.

Large, diversified and seasoned product portfolio with a sustainable track record of diversification, growth and profitability through the cycles.

Tailored sourcing supported by an omni-channel and digitally powered pan-India distribution network.

Comprehensive systems and processes contributing to robust credit underwriting and strong collections.

Its Promoter may be required to significantly reduce its ownership in the Company, i.e., to less than 20% (or any such higher percentage with prior RBI approval) on account of overlapping business with its Promoter and one of the members of its Promoter Group if the draft circular issued by the RBI on October 4, 2024 is implemented in its current form, which may have a material adverse impact on its business operations, financial position and share price.

Its Gross Stage 3 Loans amounted to 2.26% of Total Gross Loans as at March 31, 2025, which was an increase from 1.90% as at March 31, 2024. Non-payment or default by its customers, the company inability to provide adequate provisioning coverage for non-performing assets or change in regulatorily mandated provisioning requirements may adversely affect its financial condition and results of operations.

As at March 31, 2025, unsecured loans comprised 26.99% of its Total Gross Loans, which is a decrease from 28.66% as at March 31, 2024. The company unsecured loan portfolio is not supported by any collateral that could help ensure repayment of the loan, and in the event of non-payment by a borrower of one of these loans, its may be unable to collect the unpaid balance.

As at March 31, 2025, secured loans comprised 73.01% of its Total Gross Loans. The value of collateral for its secured loans may decrease or the company may experience delays in enforcing collateral, impacting its ability to fully recover the collateral value, thereby exposing it to potential loss that could adversely affect its business, results of operations, cash flows and financial condition.