About HDB Financial Service A Comprehensive Overview of Price & Journey Understanding HDB Financial Service Inception and Growth Overview Housing and Development Board (HDB) Financial Services was established in 2007, a Non-Banking Financial Company (NBFC) which is a leading entity in the non-banking financial sector. The company have 1,682 branches to get the underbanked and unbanked populations across the Country in more than 114 locations. Housing Development Finance Corporation Limited (HDFC) is one of India’s largest and most reputable financial services organizations. HDB Financial Services is subsidiary of HDFC bank. HDFC holds total stake of 94.64% in HDB financial services. Diverse financial products and services are offered by the company which includes enterprise lending, asset financing, consumer loans, fee-based products, and business process outsourcing (BPO) services. It is specialized in loan origination, underwriting, and a broad product range. The Company holds the ‘CARE AAA/Stable’ rating by CARE Ratings Limited and ‘CRISIL AAA/Stable’ rating by CRISIL Ratings Limited for Long-Term Debt, Bank Facilities, Subordinated Debt and Perpetual Bonds and A1+ ratings for commercial papers. The Company has total AUM of more than 90,235 Crores with more than 15.5 million Customers. Revenue from the lending business of the Company grew to 12,221.57 Crore in FY 2023-24 from 9,768.95 Crore in FY 2022-23. Revenue from the BPO services division declined to 1,949.55 Crore in FY 2023-24 from 2,633.93 Crore in FY 2022-23. As per Money Control, HDFC Bank is in early talks with private credit funds to sell stakes in its subsidiary, HDB Financial Services. The discussions involve five domestic funds potentially acquiring 4-7% each, as part of a value discovery process ahead of HDB Financials’ mandated IPO by October 2025. This move follows unsuccessful talks with larger investors due to valuation disagreements. HDB Financial, with a loan book over Rs 90,000 crore, is reportedly seeking a valuation of 4-5 times book value, which some consider high in current market conditions. HDB Financial Services aiming for a valuation between $9 billion to $12 billion and have plans to expand its branch by 150-200 in the current fiscal year to deepen its presence in microfinance markets. Despite potential regulatory changes by the Reserve Bank of India, HDB remains confident due to its balanced loan portfolio, with less than a fourth being unsecured. The Reserve Bank India (RBI) categorized 16 big NBFCs as upper-layer NBFCs which includes HDB Financial Services as well, In October 2021, the central bank put in place a four-layered regulatory structure for NBFCs to minimize risks for the overall financial system. Products Offerings                Consumer Durable Loan                              Digital Product Loan                                Lifestyle Product Loan                                                           Personal Loan                                                       Auto Loan                                           Two Wheeler Loan                                 Gold Loan                                                Unsecured Business Loan                          Enterprise Business Loan                  Loan Against Property                              Loan Against Lease Rental                           Loan Against Securities Asset Finance