HDFC Bank's subsidiary HDB Financial gets board approval for proposed IPO

HDFC Bank said that the board of its subsidiary HDB Financial Services has approved an initial public offering of equity shares of face value of Rs 10 each.

The IPO would comprise of a fresh issue of equity shares aggregating up to Rs 2,500 crore and an offer for sale of equity shares by existing and eligible shareholders of HDB Financial, who may offer to tender their equity shares.

In July this year, the board of HDFC Bank had provided an in-principle approval to initiate the process of listing of HDB Financial through a potential initial public offer.

HDFC Bank is private sector lender, As of 30 June 2024, the bank's distribution network was at 8,851 branches and 21,163 ATMs across 4,081 cities / towns as against 7,860 branches and 20,352 ATMs across 3,825 cities / towns as of June 2024.

The private lender's net profit increased 35.33% to Rs 16,174.75 crore on 44.77% jump in total income to Rs 83,701.25 crore in Q1 FY25 over Q1 FY24. The bank's provisions and contingencies rose 9.02% YoY to Rs 2,602.06 crore during the quarter under review.

The scrip had gained 1.99% to end at Rs 1742.15 on the BSE on Friday.

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