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.
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.
Disclaimer: This article is for informational purposes only and is not investment advice, nor an offer to buy or sell any security. Unlisted share prices are indicative. Please do your own research or consult a SEBI-registered advisor before investing.
