HDB Financial Services is a leading non-banking financial company (NBFC) in India, offering a wide range of financial products and services. It primarily focuses on providing loans to individuals and businesses, including personal loans, business loans, vehicle loans, and gold loans. Additionally, the company offers asset management, insurance, and collections services. HDB Financial Services has built a strong presence across India, catering to the needs of both urban and rural customers, with a focus on ensuring financial inclusion and providing flexible financing solutions. HDB Financial has delivered a strong financial performance in FY 2024, with notable improvements.

1. Interest Income :  
Interest income increased from ₹8,927.78 crore in FY 2023 to ₹11,156.72 crore in FY 2024, marking a growth of 24.97%. This indicates strong revenue growth from core lending operations, reflecting an expansion in the loan book or improved yield on assets.

2. Other Operating Income :  
Other operating income declined by 13.26%, from ₹3,475.10 crore in FY 2023 to ₹3,014.40 crore in FY 2024. This drop may suggest a decrease in non-interest income sources such as fees and commissions.

3. Total Income :  
Total income grew by 14.26%, from ₹12,402.88 crore in FY 2023 to ₹14,171.12 crore in FY 2024. Despite the decline in other income, the robust interest income contributed to the overall increase.

4. Finance Costs :  
Finance costs rose by 38.51%, from ₹3,511.92 crore in FY 2023 to ₹4,864.32 crore in FY 2024. This substantial increase indicates a rise in borrowing costs, possibly due to higher interest rates or increased borrowing to fund growth.

5. Depreciation and Amortization :  
Depreciation and amortization expenses grew by 29.77%, from ₹111.84 crore in FY 2023 to ₹145.14 crore in FY 2024, reflecting higher capital investments or the addition of new fixed assets.

6. Total Expenses :  
Total expenses increased by 11.16%, from ₹9,775.48 crore in FY 2023 to ₹10,866.45 crore in FY 2024. The rise in expenses was lower than the increase in income, indicating controlled cost management despite growing operational demands.

7. EBITDA :  
EBITDA surged by 33.05%, from ₹6,251.16 crore in FY 2023 to ₹8,314.13 crore in FY 2024. This reflects improved operational efficiency and a better ability to convert income into earnings before accounting for finance costs, taxes, and depreciation.

8. PAT :  
PAT increased significantly by 25.59%, from ₹1,959.35 crore in FY 2023 to ₹2,460.84 crore in FY 2024. This growth in net profit shows strong bottom-line improvement driven by higher income and well-managed expenses.

9. Net Worth :  
The company’s total net worth increased by 20.16%, from ₹11,436.97 crore in FY 2023 to ₹13,742.71 crore in FY 2024. This reflects the accumulation of retained earnings and strong profitability, contributing to shareholder equity growth.

10. Borrowings :  
Borrowings grew by 39.64%, from ₹24,227.80 crore in FY 2023 to ₹33,831.38 crore in FY 2024. This significant increase in borrowings indicates that the company has raised more debt, possibly to fund its loan book expansion.

11. Total Debt :  
Total debt increased by 33.82%, from ₹51,324.21 crore in FY 2023 to ₹68,652.50 crore in FY 2024, signaling the company’s greater reliance on external funding to support its operations and growth initiatives.

12. GNPA :  
GNPA has decreased from ₹1,914.85 crore in FY 2023 to ₹1,711.82 crore in FY 2024, reflecting a 10.61% improvement. This reduction in the gross NPAs indicates better asset quality and improved recovery or collection efforts.

13. GNPA Ratio :  
 The GNPA ratio declined significantly from 2.73% in FY 2023 to 1.90% in FY 2024. This sharp drop in the NPA ratio suggests that the company has effectively managed its loan book quality, reducing the proportion of non-performing assets.

HDB Financial Services has delivered a strong financial performance in FY 2024, with notable improvements in interest income, EBITDA, PAT, and asset quality. The reduction in GNPA and the GNPA ratio demonstrates the company’s ability to manage its credit risk effectively, further strengthening its financial health. With growing profitability and reduced asset stress, the company is well-positioned for sustained growth while maintaining a healthy balance sheet.