HDB Financial Services Raises ₹250 Crore Through Secured Debentures

HDB Financial Services , a non-banking financial company (NBFC), has successfully raised ₹250 crore through the issuance of secured redeemable non-convertible debentures (NCDs). This move highlights the company's strategic approach to diversifying its funding sources and optimizing its capital structure.

Key Details of the Debenture Issue

Particulars	Details
Issue Size	25,000 NCDs of ₹1,00,000 each
Total Amount	₹250.00 crore
Tenure	1,806 days (approximately 4.95 years)
Interest Rate	7.33% per annum
Listing	Wholesale Debt Market Segment of BSE Limited
ISIN	INE756I07FK7
Allotment Date	October 24, 2025
Maturity Date	October 04, 2030

Interest Payment Schedule

The interest on these debentures will be paid annually on October 23 for the years 2026, 2027, 2028, and 2029. The final payment of interest and principal will be made on the maturity date, October 04, 2030.

Security and Asset Cover

To secure these debentures, HDB Financial Services has created a first and exclusive charge by way of hypothecation over its present and future receivables. The company is required to maintain a minimum asset cover of 1.0 times the principal outstanding and accrued interest throughout the tenure of the NCDs.

Implications for Investors

This debenture issue provides investors with an opportunity to invest in a secured debt instrument from a reputable NBFC. The 7.33% interest rate offers a competitive return in the current market environment, especially considering the five-year tenure of the investment.

For HDB Financial Services, this successful fundraising demonstrates the company's ability to tap into the debt markets and secure long-term funding. It also reflects investor confidence in the company's financial stability and growth prospects.

As the financial services sector continues to evolve, such debt issuances play a crucial role in providing companies like HDB Financial Services with the capital needed to support their lending activities and expand their operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.85%	-0.45%	-5.23%	-12.71%	-12.71%	-12.71%

HDB Financial Services , a leading non-banking financial company (NBFC), reported a 13% year-on-year growth in its gross loan book for the quarter ended September 30, 2025. The company faced challenges in the commercial vehicle (CV) segment but saw improvements in other areas of its diversified portfolio.

Key Financial Highlights

Metric	Q2 FY26	YoY Change
Gross Loan Book	₹111,409.00 crores	+13.00%
Net Interest Income	₹2,192.00 crores	+19.60%
Net Interest Margin	7.90%	+40 bps
Profit After Tax	₹581.00 crores	+2.30% (QoQ)
Credit Costs	₹748.00 crores	+11.60% (QoQ)
Gross Stage 3 Assets	2.81%	+25 bps (QoQ)

Loan Book and Asset Quality

The company's gross loan book stood at ₹111,409.00 crores as of September 30, 2025, with secured loans comprising 73% of the total loan book. However, the company faced asset quality pressures, particularly in the commercial vehicle financing segment. Gross Stage 3 assets rose to 2.81% from 2.56% in the previous quarter.

Segment Performance

Commercial Vehicle Financing

The CV segment experienced challenges due to monsoon-related vehicle idling and asset quality pressures. Management reported that vehicle idling in certain markets reached 30-35%, compared to the usual 20% seen in Q2.

Consumer Finance

The consumer finance segment showed positive signs, with the company reporting good traction in the first 10 days of October. Auto loans, two-wheelers, and consumer durables have started picking up, indicating potential growth in the coming festive season.

Enterprise Lending

The Loan Against Property (LAP) portfolio remained stable with low credit costs. The Business Loans segment has shown signs of stabilization and slight improvement in Q2.

Growth Outlook

Management expressed optimism about growth prospects in the coming quarters, citing several factors:

Festive season demand
GST rate cuts, particularly in the auto and consumer durables segments
Expectations of improved rural consumption

The company aims for an 18-20% CAGR book growth over a 3-5 year period, subject to GDP growth and market conditions.

Customer Base and Technology

HDB Financial Services reported a 19.60% year-on-year growth in its customer base, reaching 21 million customers. The company continues to invest in technology, with initiatives like "HDB on-the-go" aimed at improving customer experience and operational efficiency.

Management Commentary

G Ramesh, MD & CEO, commented on the diversified portfolio strategy: "The diversified portfolio helps us grow in a balanced fashion across cycles and also balance out the credit cost. While it has been a little high in the last quarter or two, we are very hopeful of bringing it to a moderate level in the coming quarters."

As HDB Financial Services navigates through the current challenges, particularly in the CV segment, it remains focused on leveraging its diversified portfolio and technological capabilities to drive growth in the upcoming festive season and beyond.