HDB Financial Services Q1 FY26 report:
1. Company Overview: HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, is a leading NBFC serving 20.1 million customers through 1,771 branches across 1,166 towns in India.
2. Business Segments: It operates in three verticals—Enterprise Lending, Asset Finance, and Consumer Finance—with a granular and diversified loan book.
3. Financial Performance: Q1 FY26 PAT stood at ₹568 Cr, with Net Interest Income at ₹2,092 Cr, reflecting 6% QoQ and 18.3% YoY growth.
4. Loan Book: Total gross loans reached ₹1,09,342 Cr, a 14.3% YoY increase. Disbursements in the quarter were ₹15,171 Cr.
5. Profitability Metrics: ROA was 1.94% and ROE stood at 13.2%; EPS for the quarter was ₹7.1.
6. Asset Quality: Gross NPA was 2.56% and Net NPA was 1.11%, with a provisioning coverage ratio of 56.7%.
7. Capital Adequacy: CRAR was strong at 20.18%, supported by recent IPO proceeds of ₹2,500 Cr.
8. Borrowings: Well-diversified borrowing mix with 39% from NCDs and 39% from bank loans.
9. Technology & Risk Management: Robust tech stack and risk frameworks, with AI-based underwriting, centralized customer views, and strong ALM practices.
10. Sustainability Initiatives: ESG efforts include IGBC Gold-certified office, reforestation drives, financial inclusion, and ₹2,250 Cr+ CSR spend touching 1.5 million lives.
11. Strategic Focus: Continued emphasis on expanding into underbanked Tier-3 and Tier-4 regions with 70% of branches located outside the top 20 cities.
12. Governance: Board comprises 7 independent directors and 2 women, ensuring transparency, accountability, and regulatory compliance.
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