HDFC Bank Board approves HDB Financial Services IPO

HDFC Bank Ltd, India's largest private lender, announced on Saturday, July 20, that its Board of Directors has given in-principle approval to initiate the public listing of its subsidiary HDB Financial Services (HDBFS) through an Initial Public Offering (IPO). This move follows the Reserve Bank of India's (RBI) mandate for Non-Banking Financial Companies (NBFCs) in the "upper layer" of the system to be publicly listed.

The bank's decision comes in light of the RBI's directive issued in October 2022. HDFC Bank's Board has authorized a committee of directors to oversee the listing process and secure necessary approvals from relevant authorities, as reported by CNBC-TV18.

In March 2024, The Economic Times reported that HDFC Bank had begun plans for the HDB Financial Services IPO. An anonymous investment banker indicated that HDBFS might achieve a valuation between $9 billion to $12 billion, depending on market conditions.

Additionally, HDFC Bank's Board has approved the appointment of Ajay Agarwal as the new Company Secretary and Compliance Officer, effective July 21, 2024, succeeding Santosh Haldankar.

In its April to June quarter results for FY2025, HDFC Bank posted a 2% drop in net profit to ₹16,175 crore, compared to ₹16,511.9 crore in the same period the previous year. The bank's net interest income (NII) increased by 2.6% year-on-year to ₹29,837 crore from ₹29,078 crore in the corresponding quarter of the previous financial year.

HDFC Bank's stock closed 0.46% lower at ₹1,607.10 after Friday's trading session, down from ₹1,614.50 the previous day.