HDB Financial Services announced the immediate resignation of Mr. Arijit Basu as Non-Executive Independent Director and Chairman on January 23, 2026. The resignation was submitted due to a conflict of interest arising from his consideration for a directorship position at an Indian bank.

Leadership Transition Details

Mr. Arijit Basu (DIN: 06907779) tendered his resignation with immediate effect on January 23, 2026. His departure also resulted in the cessation of his roles as Member/Chairman of the Nomination and Remuneration Committee and the Special Committee of the Board for Monitoring and Follow-up of cases of Frauds.

Reason for Resignation

In his resignation letter, Mr. Basu explained that he was approached to consider the position of Non-Executive Director and Chairman of a bank in India. The bank has received necessary regulatory approval and is in the process of finalizing the appointment. Given the potential conflict of interest with his role at HDB Financial Services, he decided to step down from the board.

Mr. Basu noted that he would have completed his current term at HDB Financial Services in a few months, having served for almost five years in the position.

Company's Response

HDB Financial Services placed on record its sincere appreciation to Mr. Arijit Basu for his invaluable advice, stellar guidance, and support during his tenure as Non-Executive Independent Director and Chairman. The company acknowledged his contribution to maintaining high standards in corporate governance, risk management, and performance.

Regulatory Compliance

The resignation was disclosed under Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Basu confirmed that there are no other material reasons for his resignation beyond those mentioned in his resignation letter, as required under Schedule III Part A Clause 7B(ii) of the SEBI Listing Regulations.

Future Outlook

In his farewell message, Mr. Basu expressed confidence in HDB Financial Services' bright future, highlighting the company's successful completion of one of the largest IPOs in the country last year. He praised the senior management for making HDB one of the largest and finest NBFCs and thanked all employees for their sincerity, commitment, and support.

HDB Financial Services has announced strategic plans to optimize its credit cost structure while capitalizing on emerging growth opportunities across multiple financing segments. The company is implementing a comprehensive approach to enhance operational efficiency and market positioning.

Credit Cost Optimization Strategy

The financial services provider has outlined plans to reduce credit costs by 10 to 20 basis points from the current rate of 2.5% over the long term. This strategic initiative forms part of the company's broader operational efficiency drive aimed at improving financial performance.

Sector Growth Expectations

HDB Financial Services maintains a positive outlook on the consumer finance sector, citing ongoing strength in this segment. The company's assessment reflects confidence in sustained demand for consumer financing solutions.

The organization expects notable growth in two key areas:

• Commercial Vehicle Financing: Anticipated expansion driven by infrastructure development
• Construction Equipment Financing: Growth prospects linked to increased infrastructure investments

Market Drivers and Recovery Trends

The company's optimistic projections are based on increased infrastructure investments and broader economic recovery patterns. These macroeconomic factors are expected to drive demand for both commercial vehicle and construction equipment financing solutions.

Performance Targets

HDB Financial Services is aiming for improved results each quarter as part of its strategic roadmap. The combination of cost optimization and growth in key segments is expected to contribute to enhanced overall financial performance.