HDB Financial Services Limited, a subsidiary of HDFC Bank, is a prominent retail-focused Non-Banking Financial Company (NBFC) in India, classified as an Upper Layer NBFC by the Reserve Bank of India (RBI). As of September 30, 2024, the company reported total gross loans of ₹98,620 crore, achieving a compound annual growth rate (CAGR) of 20.93% since March 2022. Its Assets Under Management (AUM) stood at ₹90,230 crore as of March 31, 2024, with a CAGR of 21.18% over the same period.

For FY24, HDB Financial Services posted a Profit After Tax (PAT) of ₹2,460 crore, reflecting a robust CAGR of 55.98% since FY22. The company reported strong profitability metrics, with Return on Average Assets (RoAA) at 3.03% and Return on Average Equity (RoAE) at 19.55%.

With a vast physical presence through 1,772 branches across 1,162 towns, HDB has built a strong customer base of 17.5 million, growing at a CAGR of 28.22%. Its well-diversified loan portfolio comprises Enterprise Lending (39.85%), Asset Finance (37.36%), and Consumer Finance (22.79%), with secured loans accounting for 71.08% of the total loan book. The company maintains strong asset quality, with a Gross Non-Performing Assets (GNPA) ratio of 2.10% and a Net NPA (NNPA) ratio of 0.83%.

HDB enjoys AAA/stable credit ratings from CRISIL and CARE and operates with a competitive average borrowing cost of 7.53%. As of September 30, 2024, its Capital to Risk (Weighted) Assets Ratio (CRAR) stood at 19.30%, reflecting sound capital adequacy.

Founded in 2007, HDB Financial Services offers lending products through three key verticals: Enterprise Lending, Asset Finance, and Consumer Finance. Additionally, the company provides business process outsourcing (BPO) services—including back-office support, collections, and sales support—primarily to its promoter, HDFC Bank. It also distributes fee-based products like insurance to its lending customers.

HDB follows a robust “phygital” distribution model, combining its expansive branch network, in-house tele-calling teams, and external channel partners. As of September 30, 2024, over 80% of its branches are located outside India's top 20 cities, ensuring deep regional penetration. Its distribution capabilities are further enhanced by partnerships with over 80 brands and OEMs, and a wide network of more than 1,40,000 retailers and dealer touchpoints across the country.