HDB Financial Services (HDBFS) is a leading Non-Banking Financial Company (NBFC) that caters to the growing needs of an aspirational India, serving both Retail & Commercial Clients. It is a Systemically Important Non-Deposit taking Non-Banking Financial Company (‘NBFC’). HDFC bank holds 95.1% stakes in this subsidiary.

Highlights of the Financial Year

1. HDB Financial loan book stands at Rs.58947 as on 31.03.2021. Last year it was ~Rs.55000 Crores. This shows that HDB financial is very cautious in distributing loans, otherwise, the last 6 years CAGR i.e. from 2014 to 2020 was 26%. This we can understand with COVID-19 making businesses unviable, so giving loan becomes risky.

2. HDB Financials has liquidity ratio of 265% and RBI requirement is 100% after April 2021. So, it is sitting at comfortable position.

3. PAT has gone down to 502 Crores in FY20-21 as compared to 1036 Crores last year. This has been due to increase in provisioning for bad debts.

4. Capital Adequacy Ratio stands at 19% which is well above the RBI guidelines of 15%.

5. As on 31.03.2021, the gross NPA stands at 3.9% as compared to 3.5% last year.