HDFC Bank CFO announces upcoming IPO for HDB financial services

The Chief Financial Officer (CFO) of HDFC Bank, Srinivasan Vaidyanathan, has announced that the process of initiating the initial public offering (IPO) for HDB Financial Services, the bank's non-banking arm, is expected to begin in the next few months. The CFO mentioned that the listing requirement for the IPO is set for September 2025, and they aim to start the activity in the coming months to ensure flexibility in entering the market at the opportune time.

As of December 31, 2023, HDFC Bank holds a 94.7 percent stake in HDB Financial Services. For the October-December quarter of the financial year 2023-24, HDB Financial Services reported a profit of Rs 640 crore, compared to Rs 500 crore in the same period the previous year. The total loan book size of HDB Financial Services increased to Rs 84,000 crore from Rs 65,100 crore in the corresponding quarter last year.

The decision to proceed with the IPO comes after earlier statements by the CEO of HDFC Bank, Sashidhar Jagdishan, in July 2022. At that time, Jagdishan mentioned that the IPO plans for HDFC Securities and HDB Financial Services would depend on the merger process. He indicated that they would contemplate the IPO plans after absorbing the merger and receiving directions from regulators.

The IPO process involves filing the necessary papers with the Securities and Exchange Board of India (SEBI) and obtaining the required approvals. The bank is gearing up for these steps to meet the listing requirement timeline of September 2025.