HDB Financial Services declared a dividend of ₹2 per equity share for the financial year ended March 31, 2026, at its 19th Annual General Meeting held on June 25, 2026. The meeting, conducted via video conferencing, saw shareholders approve key financial resolutions, including a significant increase in the company's borrowing limits to support future operations.

The board proposed raising the borrowing limit from ₹1,35,000 crore to ₹1,50,000 crore, a resolution that received overwhelming approval from shareholders. Additionally, the company secured authorization to sell, assign, or securitise receivables and book debts up to ₹13,000 crore. These measures are intended to enhance liquidity and provide greater flexibility in managing the company's capital structure.

Voting Outcomes

All eight resolutions listed in the AGM notice were passed with the requisite majority. The approval for the audited financial statements for FY26 received 99.9996% of votes in favour, while the dividend declaration secured 99.9997% support. The special resolutions regarding borrowing limits and debt issuance also saw strong shareholder backing.

Governance Appointments

In a key governance change, shareholders approved the appointment of Mr. Natarajan Srinivasan as the Non-Executive Chairman and Independent Director of the company. Mr. Jimmy Tata, who retired by rotation, was eligible for re-appointment, and the resolution to appoint a director in his place was also approved. The statutory auditors and secretarial auditors presented unqualified audit reports, which were taken as read during the proceedings.

The e-voting process, scrutinized by Mr. Mitesh J. Shah of Mitesh J. Shah & Associates, recorded participation from 1,880 shareholders. The results declared on June 25, 2026, have been published on the company's website.

HDB Financial Services has allotted 1,55,000 Secured Redeemable Non-Convertible Debentures (NCDs) aggregating ₹15,500 crore on a private placement basis. The Debenture Allotment Committee approved the issuance on June 11, 2026, to optimize the cost of funds across varying tenures. The debentures offer coupon rates ranging between 7.18% and 8.23% and are secured by a charge over the company's receivables.

NCD Allotment Details

The issuance comprises two tranches of re-issuance and one tranche of fresh issuance. The debentures carry a face value of ₹1,00,000 each and are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited. The tenures range from 834 days to 1120 days, with maturity dates extending to July 2029.

Security and Payment Schedule

The NCDs are secured by a first and exclusive charge by way of hypothecation over the present and future receivables of the issuer. HDB Financial Services is required to maintain a minimum asset cover of one time the principal outstanding and interest accrued but not paid throughout the tenure of the instruments.

Interest payments are scheduled annually or at maturity depending on the tranche. For the 834-day tranche, payments are due on September 22, 2026, September 22, 2027, and on redemption. The 1058-day tranche follows an April 22 schedule, while the 1120-day tranche specifies July 05 as the payment date. All debentures are redeemable at par on maturity.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE756I01012/7db7edd6e40249b3.pdf