Synopsis:
Shares jumped over 2% after RBI clarified norms, removing restrictions on overlaps between banks and group entities, easing investor concerns. The NBFC reported 15% revenue growth, strong rural reach, and a granular, low-risk loan book, supporting post-IPO confidence.
The shares of the prominent financial service provider gained up to 4 percent in today’s trading session after RBI Governor Sanjay Malhotra gave clarification on proposed restrictions on overlaps between banks and group entities.
With a market capitalization of Rs 63,698.28 crore, the shares of HDB Financial Services Ltd were trading at Rs 770.50 per share, increasing around 2.72 percent as compared to the previous closing price of Rs 750.10 apiece.
RBI Governor clarification
The shares of HDB Financial Services Ltd have seen positive movement after RBI Governor Sanjay Malhotra clarified key regulatory norms. The removal of proposed restrictions on overlaps between banks and group entities eased investor concerns, lifting sentiment. This regulatory relief addressed a major overhang flagged in HDB’s IPO documents.
Financial & Operational Highlights
The company reported a healthy 15% revenue growth in Q1FY26, rising to Rs 4,465 crore from Rs 3,884 crore a year earlier. However, net profit slipped 2% to Rs 568 crore, indicating that rising costs or margin pressures impacted earnings despite strong topline momentum.
The NBFC arm of India’s largest private sector bank operates with a strong AAA credit profile and a network of 1,771 branches across 1,166 cities. With diversified lending across enterprise, asset, and consumer finance, it focuses on underbanked customers, maintaining a granular, seasoned loan book and conservative risk management.
This omni-channel distribution network spans across 31 states & UT, serving 20.1 million customers. Notably, 80% of branches operate outside the biggest cities, with 70% in tier 4 and beyond, highlighting strong rural and tier 2+ market penetration. Balanced geographic presence ensures robust reach and retail engagement nationwide.
Customer franchise grew 1.6x to reach 20.1 million by June 2025, showing robust acquisition momentum. The loan book remains granular, with an average ticket size of Rs 1.64 lakh, and minimal risk exposure to large borrowers, as only 0.32% of the portfolio comes from the 20 biggest customers.
HDB Financial Services is a retail-focused non-banking financial company (NBFC) in India, classified as an upper-layer NBFC (NMFC-UL) by the Reserve Bank of India (RBI). The company operates as a subsidiary of HDFC Bank and primarily serves individuals and small businesses.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
