HDFC Bank Approves To Start HDB Financial IPO Process
HDFC Bank saw its Q1 net profit fall 2% quarter-on-quarter on lower core income growth and higher tax expenses.
India's largest private lender HDFC Bank Ltd. provided an in-principle approval to initiate the process of listing of HDB Financial Services Ltd. via an initial public offering.
The company's board has delegated the powers to a committee of directors to undertake various steps in this regard, it said in an exchange filing on Saturday.
There is a mandatory requirement for a listing by September 2025 as it is under the Upper Layer NBFC according to the circular issued by the Reserve Bank of India in October 2022.
"The listing requirement of the IPO is to be in September 2025," Chief Financial Officer Srinivasan Vaidyanathan said earlier in January. "We expect in the next few months to commence the activity around that so that we have as much flexibility as we can to be in the market at the right time," Vaidyanathan said in the post-earnings analyst call In January.
HDB Financial Services added 16 branches during the quarter ended December, taking the total branches in the country to 1,618. It services 14.6 million customers through these branches across 1,125 cities.
HDFC Bank saw its net profit fall 2% quarter-on-quarter during the three months ended June on lower core income growth and higher tax expenses. The bottom line stood at Rs 16,174.75 crore for the period, compared with Rs 16,510 crore in the January-March quarter.
Net interest income, or core income for the bank rose 2% sequentially to Rs 29,837 crore. Other income too rose 16% on a quarter-on-quarter basis to Rs 10,668 crore.
