IPO-bound non-banking finance company (NBFC) HDB Financial Services does not get or give any business leads to HDFC Bank or share any office space with the latter, and is not reliant on its parent for operational purposes, MD & CEO G Ramesh, told businessline in an interaction.

“We originate our business ourselves, we don’t get any leads from any of our promoter companies. We underwrite our own business, and operate 1,771 branches of HDB Financial Services. They are our own branches and there is no shared space with HDFC Bank. And our technology stack is different than the bank, which makes our business independent,” he said.

His comments come in the backdrop of the Reserve Bank of India’s (RBI) 2024 draft norms which state that only a single entity within a bank group can undertake a particular form of permissible business.

When asked whether HDFC Bank will take over the non-bank arm if the draft norms are implemented in their entirety, Ganesan says, “It will depend on what the final guidelines say. This is an independent entity. We have no operational dependence on HDFC Bank for our business.”

HDFC Bank has provided the NBFC “patient capital”, Ganesan says, and guidance on corporate governance, risk management and customer, employee experience. “That will continue in our journey,” he said.

The initial public offering (IPO) of HDB Financial will open on June 25, 2025. The issue size is ₹12,500 crore, and the price band of the issue has been fixed at ₹700 to ₹740 per equity share. The anchor investor bidding date shall be June 24 and the IPO will close on June 27, 2025. Bids can be made for a minimum of 20 shares and in multiples of 20 shares thereafter. HDFC Bank’s stake in HDB will reduce to 75 per cent from 94 per cent post IPO, the MD said.

“We will use the newly raised funds for on-lending. It will augment our capital base, which will support our growth plans going ahead. We are looking to enter new product lines. Since we started business, we have launched a new business almost every other year. We serve aspirational India, catering to underserved and under-banked customers and we have built deep distribution and technology capabilities. It allows us to underwrite a very heterogenous product at scale,” he added.

Published on June 23, 2025