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regular-article-logo Monday, 15 April 2024

HDFC Bank plans to list HDB Financial Services, set to begin preparatory work for IPO

This was disclosed by chief financial officer Srinivasan Vaidyanathan at an earnings call after the lender declared results for the third quarter ended December 31

Our Special Correspondent Mumbai Published 18.01.24, 10:34 AM
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HDFC Bank is committed to list its non-banking arm HDB Financial Services (HDBFSL) and will begin the preparatory work for an initial public offering (IPO) shortly.

This was disclosed by chief financial officer Srinivasan Vaidyanathan at an earnings call after the lender declared results for the third quarter ended December 31.

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HDFC Bank holds 94.7 per cent stake in HDBFSL and it has time till September 2025 to list the arm. Vaidyanathan added that the IPO process will commence shortly so that it has enough flexibility to be in the market at the right time.

HDBFSL is a non-deposit taking NBFC offering various loans and asset finance products.

For the quarter ended December 31, its net revenue was at Rs 2,350 crore against Rs 2,230 crore for the quarter ended December 31, a growth of 5 per cent.

Profit after tax for the period was Rs 640 crore against Rs 500 crore in the year-ago period, a growth of 27.1 per cent.

The total loan book of the subsidiary stood at Rs 84,000 crore as on December 31 compared with Rs 65,100 crore as on December 31, 2022, showing a growth of 29 per cent.

Apart from HDBFSL, HDFC Bank is also looking to list HDFC Securities.

Speaking at the annual general meeting of the bank in 2022, Sadhidhar Jagdishan, MD & CEO of HDFC Bank, had said that the lender will look at the listing of HDFC Securities after the merger with HDFC.

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