HDB Financial Services Limited Unlisted Shares

(i) 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’).

(ii) Incorporated in 2008, they are a well-established business with strong capitalization. HDBFS is accredited with CARE AAA & CRISIL AAA ratings for its long-term debt & Bank facilities and an A1+ rating for its short-term debt & commercial papers, making it a strong and reliable financial institution.

(iii) Products of the Company: The current product portfolio consists of three main categories i.e. Loans, Fee-based products, and BPO services.

Loans

Consumer Loans – The Company provides White loans( Washing Machine and Refrigerator), Brown loans( such as televisions, audio equipment, and similar household appliances, etc) and digital products( such as Mobile Phones, Computer, and Laptops). The company also provides loans for household purposes.

Consumer Loans Portfolio includes:

1. Gold loan
2. Consumer Durable loan
3. Auto loans
4. Personal loans.
5. Loan against MFs.

Enterprise Loans:
Small and Medium Enterprise needs funding either for Working Capital, buying a new bid, or setting up a new plant. The company offers secured and unsecured loans to these SMEs.

Asset Finance:
The company provides loans to purchase a new and old vehicle or the vehicles which generate income for the borrowers such as Truck, Tractors etc.

Fee-based products:
The company is registered Corporate Insurance Agents which sells Life and General insurance products of HDFC Life and HDFC Ergo to the clients.

BPO Service:
Collection Service- The company has a contracted with HDFC bank to collect dues from the borrowers. The company has set up 15 call centers across the country with a capacity of 5000 seats.

(iv) Infrastructure:
The Company has 1,468 branches in 1,070 cities in India as on March 31, 2020.

Promoters And Management:

1. Mr. Aditya Puri - Chairman & Non-Executive Director 2. Mr. Bhavesh Zaveri - Non-Executive Director 3. Mr. Jimmy Tata - Non-Executive Director 4. Ms. Smita Affinwala - Independent Director 5. Mr. Venkatraman Srinivasan - Independent Director 6. Mr. Ramesh G. - Managing Director and Chief Executive Officers.

Shareholding Pattern:

HDFC Bank holds  95.53%  shares in HDBFS as of 31.03.2020.

Financials of HDB Financial Services Limited Unlisted Shares:

(Financials in Crores)

Year	Revenue	PAT	AUM	EPS	Book Value
2014	1688	209	13560	4	31
2015	2527	349	19290	7	44
2016	3302	534	25906	8	50
2017	5714	698	34277	10	68
2018	7061	951	44469	12	79
2019	8724	1149	55455	15	91
2020	10756	1004	55930	13	102
2021	10944	391	61560	5	107

UZ Financial Review 2019-20 1. In FY19-20, the loan disbursements were 29,853 crores as against 31,654 crores in the previous year. 2. The Assets under Management (AUM) of the Company as of March 31, 2020, increased to 58,832.75 crores from 55,425.16 crores in the previous year. Secured loans - 44,662.81 (76%) Unsecured Loan - 13,768.14 (24%) 3. As of March 31, 2020, the outstanding borrowings of the Company amounted to 47,093.93 crores which they sourced from Public Sector Banks, Private Sector Banks, Mutual Funds, Insurance Companies, Financial Institutions, etc. In FY19-20, HDBFS has raised ~19000 Cr from the various institutions. No interest payment or principal repayment of the Term Loans was due and unpaid as on March 31, 2020. This shows the company is financially stable and no liquidity risk in the business.

Borrowings	Credit rating		Amount raised
	CARE	CRISIL
Term Loans	CARE AAA;Stable	CRISIL AAA/Stable	9,325.00
Non-Convertible Debentures	CARE AAA;Stable	CRISIL AAA/Stable	7,271.00
Market Linked Debentures	CARE PP-MLD AAA;Stable	CRISIL PP-MLD AAAr/ Stable	125
Unsecured RSB	CARE AAA;Stable	CRISIL AAA/Stable	543.5
Unsecured PD	CARE AAA;Stable	CRISIL AAA/Stable	200
Commercial Paper	CARE A1+	CARE A1+	2030

4. In FY19-20, the company has earned a revenue of 10756 Cr. Out of which lending contributes 8643 Cr and BPO contributes 2110 Cr. 5. The Company's PAT has gone down slightly from 1149 Cr last year to 1004 Cr in FY19-20, on account of financial impairment loss of 1441 Cr and an increase in employees' salary. 6. The EPS for FY19-20 stands at 12.78. 7. The Book Value per Share for FY19-20 stands at 102. UZ Financial Review 2020-21 1. FY20-21 was a tough year for the Indian economy owing to the challenges faced due to COVID-19. Due to which the loan book growth this year is slow and grew by mere 2.5% which was used to be at 25% average. 2. Lending business grow by 3.2% and BPO services degrow by 5% in FY20-21 as compared to last year. 3. The debt-equity ratio of the Company as per the audited standalone financial results by statutory auditors for the year ended 31 March 2021 is 6.53. 4. The rating for bank facility, NCD, Short-term debt, Sub-ordinate debt, & Perpetual bond are "Stable" and good quality. 5. PAT has reduced from 1000 Crores to 391 Crores in FY20-21 mainly on account of "impairment of financial instruments" which has increased from 144 Crores to 306 Crores as more bad loans are created due to COVID-19. Important Banking Parameters:

Particulars	2021	2020	2019
Loan disbursement	24000	29583	31654
Net Interest Margins	7.9%	7.20%	6.20%
G.NPA	4.4%	4.20%	1.86%
N.NPA	3.05%	3.20%	1.26%
CRAR	18.89%	19.36%	17.91%
ROE	4.5%	11.84%	16.01%

HDB Financial Annual Report 2021 HDB Financial Annual Report 2020 HDB Financial Annual Report 2019 HDB Financial Annual Report 2018 HDB Financial Annual Report 2017 HDB Financial Annual Report 2016 Graphical Representation of Financials of HDB Financial Services Limited Unlisted Shares.  

Company Address:

Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad - 380 009 Tel No.: +91 79-30482717 Website: www.hdbfs.com Email: compliance@hdbfs.com CIN: U65993GJ2007PLC051028