HDBFin IPO: HDFC Bank board gives nod to initiate listing of HDB Financial Services via IPO route

India's biggest private lender, HDFC Bank Ltd, announced on Saturday, July 20, that its Board of Directors has approved in principle to initiate the public listing of its subsidiary HDB Financial Services (HDBFS) through the initial public offering (IPO) process, reported CNBC-TV18 after the company released its April to June quarter results on the same day.

HDFC Bank's decision to publicly list its subsidiary HDB Financial Services comes after the Reserve Bank of India's (RBI) decision to mandate Non-Banking Financial Companies (NBFCs) belonging to the “upper layer” of the system to publicly list themselves in the exchanges. RBI released the mandate circular in October 2022.

The Board of HDFC Bank announced the authorization of a committee of directors to oversee the listing process and to gain necessary approval from the related authorities, as per the report.

The Economic Times reported in March that HDFC Bank has initiated plans for their HDB Financial Services IPO listing. The NBFC lender is likely to get a valuation in the range of $9 billion to $12 billion for the IPO round considering the market conditions, said an anonymous investment banker, as per the report in March 2024.

The private lender's Board has also approved Ajay Agarwal as the new Company Secretary and Compliance Officer of HDFC Bank, effective from July 21, 2024, as per the report. Ajay Agarwal will be taking the place of Santosh Haldankar from July 21.

HDFC Bank posted a 2 per cent drop in net profits, at ₹16,175 crore in the April to June quarter of the financial year 2025, compared to ₹16,511.9 crore in the same period the previous year. The bank's net interest income (NII) rose 2.6 per cent year-on-year to ₹29,837 crore, as compared to ₹29,078 crore in the same quarter the previous financial year.

HDFC Banks stock closed 0.46 per cent lower at ₹1,607.10 after Friday's trading session, as compared to ₹1,614.50 on the previous day.