HDB Financial Services Limited – Investor Presentation Summary

Key Operational Highlights

  • Customer franchise grew to 24.8 million, increasing 18.4% YoY and 3.9% QoQ
  • Gross loan book stood at ₹1,24,469 crores as of September 30, 2026, growing 11.7% YoY and 2.2% sequentially
  • Secured loans comprised 74% of the gross loan book
  • Disbursements for Q2 FY27 were ₹18,522 crores, up 18.7% YoY and 5.1% QoQ
  • Branch network consists of 1,701 branches spread across 1,156 cities and towns
  • Employee count for lending business was 61,522

Segment-wise Performance

Enterprise Lending Segment: ₹46,832 crores (37.5% of total)

  • Loan Against Property: ₹27,195 crores
  • Enterprise Business Loan: ₹2,525 crores
  • Business Loan: ₹11,558 crores
  • Salaried Personal Loan: ₹3,547 crores
  • Gold Loan: ₹2,007 crores

Asset Finance Segment: ₹45,565 crores (36.5% of total)

  • Commercial Vehicle Loans: ₹29,750 crores
  • Construction Equipment Loans: ₹12,641 crores
  • Tractor Loans: ₹3,174 crores

Consumer Finance Segment: ₹32,071 crores (25.7% of total)

  • Consumer Durables Loans: ₹6,869 crores
  • Auto Loans: ₹11,070 crores
  • Two-Wheeler Loans: ₹3,586 crores
  • Relationship Personal Loan: ₹9,973 crores
  • Micro Lending: ₹573 crores

Financial Highlights

Revenue Metrics:

  • Interest income: ₹4,351 crores (up 11.9% YoY, 2.1% QoQ)
  • Finance cost: ₹1,817 crores (up 7.3% YoY, 3.6% QoQ)
  • Net interest income: ₹2,534 crores (up 15.6% YoY, 1.0% QoQ)
  • Non-interest income: ₹357 crores (up 5.5% YoY, -1.6% QoQ)
  • Net income: ₹2,891 crores (up 14.2% YoY, 0.7% QoQ)

Expense Metrics:

  • Employee cost: ₹747 crores (up 9.9% YoY, -1.6% QoQ)
  • Other operating expenses: ₹389 crores (up 11.0% YoY, 0.6% QoQ)
  • Total expenses: ₹1,135 crores (up 10.3% YoY, -0.9% QoQ)
  • Cost to income ratio: 39.3% (vs 40.7% in Q2FY26, 39.9% in Q1FY27)

Profitability Metrics:

  • Pre-provisioning operating profit: ₹1,756 crores (up 16.9% YoY, 1.7% QoQ)
  • Credit cost: ₹730 crores (down 2.5% YoY, up 4.7% QoQ)
  • Profit before tax - lending: ₹1,026 crores (up 36.2% YoY, -0.3% QoQ)
  • Profit after tax: ₹780 crores (up 34.2% YoY, -0.6% QoQ)

Margin & Return Metrics:

  • Net interest margin: 8.23% (vs 7.95% in Q2FY26, 8.35% in Q1FY27)
  • Return on assets (annualized): 2.42%
  • Return on equity (annualized): 14.4%
  • Earnings per share: ₹9.4
  • Book value per share: ₹266.7

Asset Quality

  • Gross Stage 3/GNPA: 2.43% (vs 2.81% as at September 30, 2025, 2.34% as at June 30, 2026)
  • Provision coverage on Stage 3 book: 55.00%

Segment-wise Asset Quality (September 30, 2026):

  • Enterprise Lending: GS3 ₹761 crores (1.62%), PCR 47%
  • Asset Finance: GS3 ₹1,735 crores (3.81%), PCR 54%
  • Consumer Finance: GS3 ₹526 crores (1.64%), PCR 71%

Capital & Liquidity Metrics

  • CRAR: 21.37% as at September 30, 2026
  • Borrowing mix: 43% bank loans, 28% NCDs, remainder from other instruments
  • Well-diversified liability franchise with long-term debt rated CARE AAA & CRISIL AAA

Dividend

  • Interim dividend declared: ₹2 per equity share of face value ₹10 each
  • Record date: October 23, 2026

Strategic & Technology Initiatives

Digital Transformation (Shikhar Program):

  • AI-powered document processing targeting 500K documents/day
  • Gen AI-powered voice-based loan journeys for new-to-bank customers
  • AI-based thin-file underwriting and fraud detection
  • Target: 20% fraud loss reduction, 5% auto cure of portfolio

Digital Capabilities:

  • HDB OnTheGo app for customer servicing and operations
  • Focus on enhancing customer onboarding, engagement, and servicing through technology

ESG & CSR Initiatives

ESG Priorities:

  • Integrate ESG ideology across operations
  • Ethical conduct and stakeholder commitment
  • Impact reporting and robust compliance

CSR Achievements (since inception):

  • 16,54,000 lives impacted
  • 6,30,000 trees planted
  • 24,464 tons of waste diverted from landfills
  • 1,126 waterbodies restored
  • 4,035 diagnostic camps conducted
  • 1,671 financial literacy workshops conducted

Industry Position

  • RBI-licensed NBFC classified as 'Upper Layer'
  • Subsidiary of HDFC Bank, India's largest private sector bank
  • Granular loan book: Top 20 largest borrowers contribute ~0.33% of loans
  • Focus on lending to underbanked and underserved customers across three business lines: Enterprise Lending, Asset Finance, and Consumer Finance