Slides
Page 1
Q2 FY26 Earnings Presentation October 15, 2025
Page 2
HDB Financial Services Presentation Q2 FY2026 Presentation Path 06 TECHNOLOGY & RISK MANAGEMENT FRAMEWORK 07 SUSTAINABILITY INITIATIVES 050301 ABOUT HDB HDB OVERVIEW BORROWINGS & CAPITAL STRUCTURE 04 FINANCIAL PERFORMANCE – Q2FY26 02 EXECUTIVE SUMMARY – Q2FY26 2
Page 3
HDB Financial Services Presentation Q2 FY2026 • 17 3 About HDB 2 3 HDB – Snapshot1 The Essence of HDB – Our Vision, Mission and Values Our Journey Section 1
Page 4
HDB Financial Services Presentation Q2 FY2026 HDB – Snapshot 4 • We are a subsidiary of HDFC Bank, which is the largest private sector bank in India • HDBFS is licensed by RBI as a Non-Banking Finance Company (“NBFC”) • Classified as an ‘Upper Layer’ NBFC • Strong and reliable financial institution which is independently funded - its long-term debt & bank facilities rated CARE AAA & CRISIL AAA, and short-term debt & commercial papers rated A1+ • Network of 1,749 branches spread across 1,157 cities and towns • Long operating track record and understanding of customer behaviour leveraged to focus on lending to underbanked and underserved customers • 3 key business lines: – Enterprise Lending (small and medium businesses lending) – Asset Finance (Commercial Vehicles / Construction Equipment/ Tractor financing) – Consumer Finance (Auto, Two-wheeler and short tenor consumption loans) • Granular and well seasoned loan book – Top 20 largest borrowers contribute ~0.32% of loans – Loan book seasoned across asset and macro economic cycles • Conservative liability franchise built on a prudent ALM framework We serve ‘Aspirational India’
Page 5
HDB Financial Services Presentation Q2 FY2026 • 17 The Essence of HDB … What we stand for Customers Stakeholders Employees Best in class Governance practices embedded over the years through a pedigreed parentage Focused on prudent, purposeful, resilient growth which is rooted in values Our Foundational Pillars – People | Processes | Products | Partnerships 5 At the heart of everything we do
Page 6
HDB Financial Services Presentation Q2 FY2026 • 17 6 The Essence of HDB … Our Vision and Mission
Page 7
HDB Financial Services Presentation Q2 FY2026 • 17 7 The Essence of HDB … Our Values Simplicity We keep our customers, employees and stakeholders at the heart of everything we do. We focus on removing complexities We deliver solutions that are simple and relevant Our communication, policies and processes are simple to understand and easy to follow Respect As we continue to increase our reach in every corner of the country, we value those who work with us and the contributions that they make to our business. We respect our people’s individuality and diversity We conduct ourselves in a manner that reflects the spirit of inclusion and humility We treat all our customers, employees and stakeholders with respect and empathy Excellence In our journey of becoming India’s most admired NBFC, we want to excel and set high standards in every aspect. We aim to execute flawlessly and deliver the highest quality of service and value through simple, relevant solutions We challenge ourselves to meet our goals and pursue excellence We consistently strive to exceed the expectations of our customers, colleagues and stakeholders Collaboration We believe that success is achieved not by any one individual but by teams that work together. We operate in a spirit of collaboration and teamwork We support and encourage people to use their expertise and experience to solve everyday challenges We embrace a mindset of openness and trust that helps in breaking silos Agility We proactively respond to the changing market environment and evolving needs of our customers. We strive to deliver the highest sustainable standards through efficient and timely execution Our speed of action reflects our readiness to continuously improve and our openness to change and discovery We are flexible and constantly look for ways to enhance efficiencies Integrity We ensure that the highest standard of professional conduct is embedded in every corner of the organisation. It defines how we go about our business and treat our people, customers and stakeholders. We are transparent and ethical in the way we conduct ourselves We are honest and fair and base our conclusions on facts We have a strong moral code and take responsibility of our actions
Page 8
HDB Financial Services Presentation Q2 FY2026 Our Journey 8 Established as subsidiary of HDFC Bank Products Introduced Commercial Vehicle Loans Gold Loans Auto Loans Commercial Equipment Loans Consumer Durable Loans Digital Product Loans Two-wheeler loans Micro finance Lifestyle Finance Loans Tractor Loans 20192017201620102008 2011 2012 20182007 2020 2024 Opened first branch in Chennai Branch count crossed 100 CARE AAA rating for NCDs AUM crossed INR 100,000 MM Branch count crossed 1,000 AUM crossed INR 500,000 MM AUM crossed INR 1 Trillion 2025 Listed on Stock exchanges NSE: HDBFS BSE: 544429
Page 9
HDB Financial Services Presentation Q2 FY2026 • 17 9 Executive Summary Q2FY26 2 Key Parameters1 Key Highlights – Q2FY26 & H1FY26 Section 2
Page 10
HDB Financial Services Presentation Q2 FY2026 Gross NPA: 2.81% Net NPA : 1.27% Earnings/share : ₹ 7.0 Book Value/share: ₹ 233.1 Net Interest Margin: 7.9% Q2 PAT ₹ 581 Cr Return on Assets: 1.9% Return on Equity : 12.2% Total Gross Loans ₹ 1,11,409 Cr Key Parameters – Q2 FY26 10 21.0 MM Customers 1,749 Branches across 1,157 Cities/ Towns
Page 11
HDB Financial Services Presentation Q2 FY2026 Key Highlights – Q2 FY26 & H1FY26 (1/3) 11 Business metrics Customer franchise grew to 21.0 million with an increase of 4.2% during the quarter and 19.6% Y-o-Y The total gross loans as on September 30, 2025 stood at ₹1,11,409 crores, growing 1.9% sequentially and 13.0% Y-o-Y. Secured loans comprised 73% of the total loan book Disbursements for the quarter ended September 30, 2025 was ₹15,599 crores, up by 2.8% sequentially and down by 0.5% YoY Branch count stood at 1,749, spread across 1,157 cities and towns P&L Metrics Net interest income for the quarter was ₹2,192 crores, an increase of 4.8% Q-o-Q and 19.6% Y-o-Y; Net interest income for half year ended September 30, 2025 was ₹4,284 crores, an increase of 19.0% Y-o-Y Net Interest Margin for Q2FY26 was at 7.9% vs 7.7% in Q1FY26 & 7.5% in Q2FY25; Net Interest Margin for H1FY26 was at 7.9% vs 7.6% in H1FY25 Cost to Income ratio for our lending business was 40.7% in Q2FY26 as compared to 42.7% in Q1FY26 & 42.7% in Q2FY25; Cost to Income ratio for our lending business was 41.6% in H1FY26 as compared to 43.0% in H1FY25
Page 12
HDB Financial Services Presentation Q2 FY2026 Key Highlights – Q2 FY26 & H1FY26 (2/3) 12 P&L Metrics (contd…) Credit Cost for the quarter was ₹748 crores as against ₹670 crores for the prior quarter and ₹431 crores for the quarter ended September 30, 2024; Credit Cost for half year ended September 30, 2025 was ₹1,418 crores as against ₹843 crores for the half year ended September 30, 2024 Profit after tax for the quarter ended September 30, 2025 was ₹581 crores as against ₹591 crores for quarter ended September 30, 2024; Profit after tax for the half year ended September 30, 2025 was ₹1,149 crores as against ₹1,173 crores for half year ended September 30, 2024 Asset Quality Gross Stage 3 as at September 30, 2025 was 2.81% as against 2.56% as at June 30, 2025 and 2.10% as at September 30, 2024 Provision Coverage on the Stage 3 book stood at 54.73%
Page 13
HDB Financial Services Presentation Q2 FY2026 Key Highlights – Q2 FY26 & H1FY26 (3/3) 13 Return Metrics RoA (annualized) for the quarter ended September 30, 2025 stood at 1.93%, which includes opening assets of approximately ₹9,000 crore of OFS money as on June 30, 2025. Adjusted for this, the RoA would be 2.02% RoA (annualized) for the H1FY26 stood at 2.1% RoE (annualized) for the quarter ended September 30, 2025 stood at 12.23% Earnings per share for the quarter was ₹7.0 and Book Value per share stood at ₹233.1 Borrowing Metrics Our Borrowing mix remains well-diversified with 40% of our borrowings as on September 30, 2025 coming from bank loans, 37% from NCDs, rest from a mix of other instruments Capital & Liquidity Metrics We remain well capitalized with total CRAR of 21.82% as at September 30, 2025 Employee Metrics Employee Count of 61,332 for the lending business
Page 14
HDB Financial Services Presentation Q2 FY2026 • 17 Section 3 14 HDB Overview 2 3 4 5 HDB – At a Glance1 Key Metrics Product Portfolio & Loan Book Mix Distribution Network Customer Franchise
Page 15
HDB Financial Services Presentation Q2 FY2026 HDB at a glance 15 One of the leading, diversified retail-focused NBFCs in India Product portfolio serving multiple credit needs of customers across three business verticals: Enterprise Lending, Asset Finance and Consumer Finance 21.0MM Customers 2.81% GNPA 1.9% RoA* 12.2% RoE* INR 1,114 Bn Total Gross Loans INR 5.8 Bn PAT 1.27% NNPA 4.9x Debt/ Equity Key Metrics (Q2FY26) One of India’s largest and fastest growing customer franchises Primarily catering to underserved and underbanked customers in low to middle income households with minimal or no credit history Well seasoned and highly granular loan book Diversified across products and geographies resulting in strong & sustainable franchise Total Gross Loans Mix 38%, Enterprise Lending 38%, Asset Finance 24%, Consumer Finance Sep-25 Note: Data as on September 30 2025; *Quarterly Annualised
Page 16
HDB Financial Services Presentation Q2 FY2026 Key Metrics 16 Profitability and Returns INR 5.8 Bn PAT 1.9% RoA* 12.2% RoE* Asset Quality 2.81% GNPA 1.27% NNPA 2.7% Credit Cost* Growth (QoQ/YoY) 1.9% / 13.0% Total Gross Loans Growth 2.4% / -1.6% PAT Growth 4.2% / 19.6% Customers Growth Scale INR 1,114 Bn Total Gross Loans 21.0 MM Customers 1,749 Branches Note: Data as on September 30 2025; *Quarterly Annualised
Page 17
HDB Financial Services Presentation Q2 FY2026 Product Portfolio 17 Customer Segment Products Enterprise Lending Loan Against Property Enterprise Business Loan Business Loan Salaried Personal Loan Gold Loans Asset Finance Commercial Vehicle Loans Construction Equipment Loans Tractor Loans Consumer Finance Consumer Durables Loans Auto Loans Two-Wheeler Loans Relationship Personal Loan Micro Lending ATS1 (INR) Avg. Tenor1 Fee Products General Insurance Life Insurance Health Insurance INR 1,114 BN2 Total Gross Loans ~10 yrs 4.5MM ~9 yrs 1.2MM ~4 yrs 293K ~5 yrs 330K ~3 yrs 197K ~4 yrs 882K ~4 yrs 2.0MM ~4 yrs 318K ~1 yr 15K ~4 yrs 433K ~2 yrs 52K ~2 yrs 53K ~2 yrs 23K Notes: (1) On loans outstanding as at Sept 30, 2025 (2) As at Sept 30, 2025
Page 18
HDB Financial Services Presentation Q2 FY2026 Loan Book Mix 18 Product Mix Geographic Mix Notes: As at September 30, 2025 22% 2% 11% 3% 1% 16% 9% 8% 2% 2% 1% 4% 6% 2% 3% 8% 0% Loan Against Property Enterprise Business Loan Business Loan Salaried PL Gold Loan CV Loans (New) CV Loans (Used) CE Loan (New) CE Loan (Used) TL (New) TL (Used) Consumer Durables Auto Loans (New) Auto Loans (Used) 2W Loans Relationship PL Micro Lending 13% 12% 9% 8% 7% 6% 5% 5%4%4% 4% 4% 3% 3% 3% 3% 2% 2% 1% 1% 2% Uttar Pradesh Tamil Nadu Maharashtra Rajasthan Gujarat Madhya Pradesh Delhi/NCR KarnatakaAndhra Pradesh West Bengal Haryana Telangana Punjab Bihar Kerala Jharkhand Assam Others Odisha Chhattisgarh Uttarakhand
Page 19
HDB Financial Services Presentation Q2 FY2026 Omni-Channel Distribution with Pan-India Branch Network 19 North 31% South 26% East 17% West 26% Tier 1 11% Tier 2 9% Tier 3 9%Tier 4 & Beyond 71% Strong Presence Beyond Metro Markets (1) Wide Distribution Presence(1) 1,749 Branches 31 States and UTs 1,157 Towns and Cities Balanced Presence Across Geographies (1) 150,000+ Retailers and Dealer Touchpoints 21.0M Customers Pan India Presence With Focus on Expansion in Tier-2+ Markets(1) 80%+ of Our Branches are Outside 20 Largest Cities in India 71% Branches Located in Tier 4+ towns 211 Tamil Nadu 51 Kerala 61 Karnataka 180 Maharashtra 134 Madhya Pradesh 2 Goa 1 Dadra & Nagar Haveli and Daman & Diu 132 Gujarat 151 Rajasthan 50 Haryana 4 Chandigarh 56 Punjab 17 Himachal Pradesh 16 Uttarakhand 40 Delhi/NCR 211 Uttar Pradesh 1 Sikkim 1 Arunachal Pradesh 4 Puducherry 77 Andhra Pradesh 56 Telangana 24 Chhattisgarh 55 Odisha 31 Jharkhand 80 West Bengal 1 Mizoram 68 Bihar 2 Tripura 2 Meghalaya 26 Assam 4 Jammu & Kashmir Notes: (1) As at September 30, 2025
Page 20
HDB Financial Services Presentation Q2 FY2026 12.2 15.8 19.2 21.0 Mar-23 Mar-24 Mar-25 Sep-25 Customer Franchise 20 Customer Franchise Growth New Customers Added (MM) Granular Loan Book… …With a Low Customer Concentration ~INR 165,000 Average Ticket Size of Overall Loan Book of Total Gross Loan Book from 20 Largest Customers ~0.32% 1.7x
Page 21
HDB Financial Services Presentation Q2 FY2026 • 17 Section 4 21 Financial Performance Q2FY26 2 3 4 5 Disbursement & Total Gross Loans Mix1 P&L and Balance Sheet Return Metrics Asset Quality Performance through the years
Page 22
HDB Financial Services Presentation Q2 FY2026 39.8% 39.4% 39.3% 38.7% 38.4% 37.4% 37.6% 38.0% 37.8% 38.0% 22.8% 22.9% 22.7% 23.5% 23.6% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Enterprise Lending Asset Finance Consumer Finance Disbursement and Total Gross Loans Mix 22 29.0% 26.5% 30.3% 25.9% 27.8% 32.4% 34.3% 34.9% 29.1% 32.4% 38.6% 39.2% 34.8% 45.0% 39.8% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Enterprise Lending Asset Finance Consumer Finance 15,685 16,273 17,643 98,624 102,097 106,878 111,409 15,171 Disbursements Total Gross Loans INR Crores INR Crores 15,599 109,342
Page 23
HDB Financial Services Presentation Q2 FY2026 Profit & Loss Statement 23 Particulars Q2FY25 Q1FY26 Q2FY26 QoQ YoY H1FY25 H1FY26 YoY Total Gross Loans 98,264 1,09,342 1,11,409 1.9% 13.0% 98,264 1,11,409 13.0% Interest income 3,431 3,832 3,887 1.4% 13.3% 6,696 7,718 15.3% Finance cost 1,598 1,740 1,694 -2.6% 6.0% 3,095 3,434 10.9% Net Interest Income 1,833 2,092 2,192 4.8% 19.6% 3,601 4,284 19.0% Non Interest Income 281 330 339 2.6% 20.6% 587 669 13.9% Net Income 2,113 2,422 2,531 4.5% 19.8% 4,188 4,953 18.3% Employee cost 618 685 679 -0.8% 10.0% 1,240 1,364 10.0% Other Operating Expenses 286 349 350 0.4% 22.6% 559 699 25.0% Total expenses 903 1,033 1,029 -0.4% 13.9% 1,799 2,063 14.7% Pre-Provisioning Operating Profit 1,210 1,388 1,502 8.2% 24.1% 2,389 2,890 21.0% Credit Cost 431 670 748 11.7% 73.6% 843 1,418 68.1% Profit Before Tax – Lending 779 719 753 4.8% -3.3% 1,545 1,472 -4.7% BPO Income (Net) 20 14 29 107.8% 43.4% 38 43 13.4% Tax Expense 208 165 201 21.8% -3.5% 410 366 -10.9% Profit After Tax 591 568 581 2.4% -1.6% 1,173 1,149 -2.0% INR Crores
Page 24
HDB Financial Services Presentation Q2 FY2026 Balance Sheet 24 Particulars March’25 September’25 Cash and cash equivalents 950 1,138 Bank balances other than above 34 207 Derivative financial instruments 108 477 Trade receivables 225 252 Loans (Net) 1,03,343 1,07,759 Investments 2,060 3,076 Other financial assets 48 47 Deferred tax assets (Net) 883 930 Other Non-financial Assets 1,012 888 Total Assets 1,08,663 1,14,774 Equity 15,820 19,338 Borrowings 87,398 90,541 Other Financial Liabilities 3,944 3,618 Trade Payables 453 220 Non-Financial Liabilities 1,047 1,043 Derivative Financial Instruments 2 14 Total Equity and Liabilities 1,08,663 1,14,774 INR Crores
Page 25
HDB Financial Services Presentation Q2 FY2026 Income Metrics – Lending Business 25 Net Interest Income INR Crores Yield, COF & NIM (%) 1,833 2,092 2,192 Sep-24 Jun-25 Sep-25 Net Total Income INR Crores 2,113 2,422 2,531 Sep-24 Jun-25 Sep-25 14.1 14.2 14.1 6.6 6.4 6.1 Sep-24 Jun-25 Sep-25 Yield CoF Non-Interest Income 7.5 7.7 7.9 NIM QoQ 4.8% YoY 19.6% QoQ 4.5% YoY 19.8% INR Crores 281 330 339 Sep-24 Jun-25 Sep-25 QoQ 2.6% YoY 20.6%
Page 26
HDB Financial Services Presentation Q2 FY2026 Operating Expenses – Lending Business 26 618 685 679 286 349 350 Sep-24 Jun-25 Sep-25 Employee Cost Other Operating Expenses 42.7% 42.7% 40.7% Sep-24 Jun-25 Sep-25 3.7% 3.8% 3.7% Sep-24 Jun-25 Sep-25 903 1,029 Operating Expenses Cost-to-Income Ratio Opex to Total Gross Loans (annualized) INR Crores 1,033
Page 27
HDB Financial Services Presentation Q2 FY2026 779 719 753 20 14 29 Sep-24 Jun-25 Sep-25 Lending BPO Services Profitability Metrics 27 Profit After Tax INR Crores 591 568 581 Sep-24 Jun-25 Sep-25 799 733 QoQ 6.8% YoY -2.1% QoQ 2.4% YoY -1.6% 782 1,210 1,388 1,502 Sep-24 Jun-25 Sep-25 QoQ 8.2% YoY 24.1% Pre-Provisioning Operating Profit (Lending) Profit Before Tax INR Crores INR Crores
Page 28
HDB Financial Services Presentation Q2 FY2026 Return Metrics 28 7.4 5.9 6.7 7.1 7.0 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 187.4 193.0 198.8 225.4 233.1 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 INR INR 2.4% 1.8% 2.0% 1.9% 1.9% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 16.2% 12.5% 13.6% 13.2% 12.2% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Return on Assets Return on Equity Earnings Per Share Book Value Per Share
Page 29
HDB Financial Services Presentation Q2 FY2026 431 670 748 Sep-24 Jun-25 Sep-25 Credit Cost Asset Quality 29 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Stage-wise Loan Book Total Gross Loans 98,624 1,02,097 1,06,878 1,09,342 1,11,409 Stage 1 94,483 97,707 1,02,735 1,04,106 1,05,794 Stage 2 2,068 2,096 1,729 2,442 2,489 Stage 3 2,073 2,294 2,414 2,794 3,126 Provision Coverage Stage 1 1,631 1,630 1,788 1,521 1,441 Stage 2 535 450 396 497 498 Stage 3 1,258 1,377 1,351 1,584 1,711 1.8% 2.5% 2.7% As a % of Avg. Loan Book QoQ 11.7% YoY 73.6% Credit Cost Loan Book Staging INR Crores INR Crores
Page 30
HDB Financial Services Presentation Q2 FY2026 Financial Snapshot (INR Crores) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 3 Yr CAGR 10 Yr CAGR AUM 19,290 25,906 34,277 44,469 55,425 58,833 61,561 61,444 70,084 90,235 107,262 20.4% 18.7% Total Income (Lending) 2,453 3,222 4,380 5,533 7,077 8,643 8,924 8,943 9,769 12,222 15,084 19.0% 19.9% Interest Expenses (Lending) 1,347 1,572 2,050 2,357 3,333 4,081 3,883 3,326 3,512 4,864 6,390 24.3% 16.8% Net Total Income (Lending) 1,106 1,651 2,330 3,176 3,743 4,562 5,041 5,617 6,257 7,357 8,693 15.7% 22.9% Operating Expenses (Lending) 413 649 950 1,261 1,456 1,760 1,576 1,939 2,440 3,143 3,724 24.3% 24.6% Credit Cost (Lending) 172 194 340 519 637 1,442 3,069 2,466 1,330 1,067 2,113 -5.0% 28.5% Profit before tax (Lending) 521 807 1,040 1,396 1,651 1,360 396 1,213 2,487 3,147 2,857 33.0% 18.6% Net BPO Income 10 10 18 69 73 104 104 135 141 158 71 -19.1% 22.1% Profit after tax 349 534 699 952 1,153 1,005 391 1,011 1,959 2,461 2,176 29.1% 20.1% Ratios Cost to Income (Lending) 37.4% 39.3% 40.8% 39.7% 38.9% 38.6% 31.3% 34.5% 39.0% 42.7% 42.8% Return on Assets 2.1% 2.4% 2.4% 2.4% 2.3% 1.7% 0.6% 1.6% 3.0% 3.0% 2.2% Return on Equity 14.7% 16.0% 15.7% 16.5% 17.2% 13.2% 4.8% 11.2% 18.7% 19.5% 14.7% Gross NPA 0.8% 1.2% 1.5% 1.6% 1.8% 3.9% 4.5% 5.0% 2.7% 1.9% 2.3% Net NPA 0.5% 0.7% 0.8% 1.0% 1.2% 3.1% 3.1% 2.3% 1.0% 0.6% 1.0% Provisioning Coverage Ratio 43.6% 41.1% 42.4% 39.7% 32.2% 19.4% 31.7% 54.1% 65.1% 66.8% 56.0% CRAR 23.1% 19.2% 20.8% 17.9% 17.9% 19.4% 18.9% 20.2% 20.1% 19.2% 19.2% Leverage Ratio 5.46 6.27 5.38 6.41 7.14 6.93 7.02 5.77 5.26 5.81 5.85 Credit Cost to Avg. Gross Loans 1.1% 0.9% 1.2% 1.4% 1.3% 2.5% 5.1% 4.0% 2.0% 1.3% 2.1% Performance Through The Years 30COVID-19 period
Page 31
HDB Financial Services Presentation Q2 FY2026 • 17 Section 5 31 Borrowings & Capital Structure 2 Liability Franchise1 Capital & Liquidity Metrics 3 Balance Sheet and Capital Productivity 4 Shareholding Pattern
Page 32
HDB Financial Services Presentation Q2 FY2026 Term loans and Working Capital Demand Loans, 40.1% Non-Convertible Debentures, 37.5% External Commercial Borrowings, 11.2% Sub debt, 5.4% Securitsation, 1.9% Perpetual debt, 1.6% Commercial paper, 2.3% Liability Franchise 32 5.9x 5.8x 5.9x 5.1x 4.9x Debt/Equity Ratio High-quality liability franchise enables us to fund our growth plans at scale AAA / Stable; A1+ AAA / Stable; A1+CRISIL CARE 82,681 83,681 87,398 91,472 90,541 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Liabilities Break-up Borrowings Overview As on Sep-25 INR Crores
Page 33
HDB Financial Services Presentation Q2 FY2026 Capital & Liquidity Metrics 33 14.64% 14.42% 14.67% 15.71% 17.26% 4.66% 4.78% 4.55% 4.47% 4.56% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 19.30% 19.20% 19.22% 20.18% 198% 157% 161% 151% 21.82% 174% CRAR LCR Tier-I Capital Tier-II Capital
Page 34
HDB Financial Services Presentation Q2 FY2026 34 Asset Liability Management – September 2025 Inflows Outflows Particulars Less than one month Over one month to 2 months Over 2 months to 3 months Over 3 Months upto 6 months Over 6 Months upto 1 year Over 1 year upto 2 years Over 2 year upto 3 years Over 3 years upto 5 years Over 5 years Inflows 17,776 4,493 4,106 11,058 18,095 34,315 17,571 18,067 13,452 Outflows 5,351 3,178 1,883 15,587 15,839 40,893 16,709 14,644 24,849 Cumulative Mismatch 12,425 13,740 15,963 11,433 13,689 7,112 7,974 11,397 0 Positive cumulative mismatch across all time-buckets INR Crores
Page 35
HDB Financial Services Presentation Q2 FY2026 Balance Sheet and Capital Productivity 35 Total Gross Loans and RoA Capital Position and RoE 2.1% 2.4% 2.4% 2.4% 2.3% 1.7% 0.6% 1.6% 3.0% 3.0% 2.2% -6.5% -1.5% 3.5% 10,000 30,000 50,000 70,000 90,000 1,10,000 1,30,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Loan Book RoA % 23.1% 19.2% 20.8% 17.9% 17.9% 19.4% 18.9% 20.2% 20.1% 19.2% 19.2% 14.7% 16.0% 15.7% 16.5% 17.2% 13.2% 4.8% 11.2% 18.7% 19.5% 14.7% -50.0% -30.0% -10.0% 10.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CRAR ROE % INR Crores
Page 36
HDB Financial Services Presentation Q2 FY2026 Shareholding Pattern 36 Promoter Group, 74.2% Institutional Investors, 14.1% Retail & Others, 11.7% Top Institutional Holdings: Domestic Nippon MFs Kotak MFs SBI MFs Mirae MFs Franklin Templeton MFs Notes: (1) Holdings as on 30th Sept-2025 (2) Institutional Investors include MFs, Insurance Cos, FPIs, AIFs & Pension Funds Top Institutional Holdings: Foreign Baillie Gifford Morgan Stanley BNP Paribas Blackrock Amundi Funds
Page 37
HDB Financial Services Presentation Q2 FY2026 • 17 Section 6 37 Technology & Risk Management Framework 2 Technology Stack1 Digital Capability 3 Risk Management Framework
Page 38
HDB Financial Services Presentation Q2 FY2026 Technology Stack 38 Internal Process Oriented Customer Facing External Ecosystem Engagement Documentation Verification & Disbursement Servicing Reducing Onboarding Time And Improving “Through The Gate” Quality Enhanced Underwriting Capabilities By Larger Universe Of Data Points Minimizing Need For Customer To Provide Documents Faster & Safer Collections By Directly Accessing Customer Bank Accounts Centralized view of the customer improving customer service Driver License, NPCI Setu Video KYC and CKYC, Customer 360 View: FinnOne LMS and Sugar-crm Customer Mobile App and Portal Quick Apply Chatbot, Call Centre and IVR Support Liveliness detection Location information Alternate Data Serial number verifications Service on Whatsapp, Mobile App, Web Application Banking and Income Documents Robust Rule Engine AI based RPA Geo-Location Collection App and E-receipts Docs Classification Docs Smart Match Documentation LOS API Dedupe API Underwriting Technology Capabilities Benefiting our Customers, our Third-party Partners as well as our Sales Teams
Page 39
HDB Financial Services Presentation Q2 FY2026 Digital Capabilities – “HDB OnTheGo” App 39 DAU: Daily active users
Page 40
HDB Financial Services Presentation Q2 FY2026 Risk Management Framework 40 Mange risks via diversification across product lines, customer segments and geographies, and targeting balanced growth while maintaining asset liability balance, prudent provisioning for bad assets Operational Risk Management Committee in place to manage risks by identifying, assessing and monitoring potential threats, strengthening controls and minimizing operational risk losses Manage risks through a strict code of conduct policy for its employees, good corporate governance policies and an effective customer grievance mechanism Manage risks by defining target markets and underwriting criteria for every product and providing loans to only those eligible customers who pass the minimum credit parameters Manage risks by performing Gap Analysis to measure interest rate risk exposure to NII over the horizon of analysis along with tailoring advances book and funding strategy to offset repricing of borrowings by repricing loans Asset Liability Committee in place which reviews NIMs, maturity profile and asset liability management; articulates interest rate views and consequently decides on future business strategy — all while complying with the regulatory LCRs Manage risks via Disaster recovery and Business Continuity Plans (BCP) to enhance system resiliency to manage risks due to system failures and cyber-attacks Manage, identify and reduce risks by rigorous testing and robust internal policies which are updated frequently in line with regulatory changes. The Compliance team works with business and operations to ensure active compliance risk management and monitoring. Phishing emails are protected at gateway level through anti-spam and anti-malware solutions, Sender Policy Framework ensures only validated/ registered domains can deliver emails Operational Risk Credit RiskReputation Risk Liquidity RiskInterest Rate Risk Technology RiskCompliance Risk Information Security Risk Business / Strategic Risk
Page 41
HDB Financial Services Presentation Q2 FY2026 • 17 Section 7 41 Sustainability Initiatives 2 Environment, Social & Governance (ESG) 1 Corporate Social Responsibility (CSR)
Page 42
HDB Financial Services Presentation Q2 FY2026 ESG Framework 42 Integrate ESG Ideology: Embedding the Company’s ESG ideology and identifying ESG related risks and adverse incidents that can the affect business operations Ethical Conduct: Conduct business ethically having value driven approach in decision making Stakeholder Commitment: Demonstrate organizational commitment to stakeholders meeting their requirements and expectations Impact Reporting: Reporting the measurable impacts of business activities on the environment and society Robust Compliance: Ensuring robust compliance management with applicable statutory and regulatory guidelines Continuous ESG Improvement: Continual evaluation and adoption of relevant measures to improve upon ESG Maturity
Page 43
HDB Financial Services Presentation Q2 FY2026 ESG Priorities 43 Climate & Resources Sustainable Sourcing People and Culture Customer Focus Social Impact Stakeholder Trust Good Governance
Page 44
HDB Financial Services Presentation Q2 FY2026 ESG Highlights 44 ENVIRONMENT Achieved ISO 27001:2022 Certification for a robust Information Security Management System GOVERNANCE ESG & CSR committee at the Board level and ESG policy framework approved by Board members Simulated Cyberattack drills like phishing campaigns to strengthen cybersecurity. Launched "TRINETRA" (IT Command Centre) to strengthen our technology operations and Cybersecurity posture Mandatory training to all employees on POSH, Cybersecurity, and Health & Safety standards Achieved ISO 22301:2019 Certification for comprehensive Business Continuity Management (BCM). 1 2 3 6 5 4 SOCIAL
Page 45
HDB Financial Services Presentation Q2 FY2026 Corporate Social Responsibility 45 1.5 Mn+ Lives Touched 100+ Social & Environmental Projects Supported 75 On-boarded Partners ₹ 2250 Mn+ Spent on CSR Initiatives 500K+ Trees Planted 160+ Lakes Restored Notes: Figures since inception
Page 46
HDB Financial Services Presentation Q2 FY2026 Physiotherapy for Truck Drivers Maternal Child Health & Nutrition Free OPD Services in Rural Areas Safe Sanitation Complex, WASH Promoting Waste Management Financial Literacy Program (digital)Financial Literacy Program (physical)Promoting Rural Livelihoods Skill Enhancement Program CSR: Intervention Themes 46 Environment (Water + Waste + Plantation) Literacy & Livelihoods (Employability Skills + Financial Literacy) Healthcare (Preventive + Curative + Capacity) Reviving Depleting Lakes Building Water Harvesting Structures Tree Plantation Drives
Page 47
HDB Financial Services Presentation Q2 FY2026 • 3 Safe Harbour Statement 47 Certain statements are included in this release which contain words or phrases, such as ‘will’, ‘aim’, ‘will likely result’, ‘believe’, ‘expect’, ‘will continue’, ‘anticipate’, ‘estimate’, ‘intend’, ‘plan’, ‘contemplate’, ‘seek to’, ‘future’, ‘objective’, ‘goal’, ‘project’, ‘should’, ‘will pursue’ and similar expressions or variations of these expressions, that are ‘forward-looking statements’. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various services, future levels of our non-performing loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to pay dividends, the impact of changes in RBI and other regulations, our ability to roll over our short-term funding sources and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions, instability or uncertainty in India and other countries which have an impact on our business activities or investments caused by any factor, including terrorist attack in India, the United States or elsewhere, anti-terrorist or other attacks by the United States, a United States-led coalition or any other country, tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India, the monetary and interest rate policies of the Government of India, natural calamities, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in Indian and foreign laws and regulations, including tax, accounting and RBI guidelines, changes in competition and the pricing environment in India, and regional or general changes in asset valuations. None of Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Although Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of Company’s management on future events. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Company’s control. Past performance is not a reliable indication of future performance. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice.
Page 48
HDB Financial Services Presentation Q2 FY2026 Thank You For More Information please contact: Email: investorcommunications@hdbfs.com
Page 49
HDB Financial Services Presentation Q2 FY2026 Segment P&L Statement H1 FY26 49 Particulars Lending BPO Total Interest income 7,718 - 7,718 Finance cost 3,434 - 3,434 Net Interest Income 4,284 - 4,284 Non Interest Income 669 624 1,293 Net Income 4,953 624 5,577 Employee cost 1,364 554 1,918 Other Operating Expenses 699 28 727 Total expenses 2,063 582 2,644 Pre-Provisioning Operating Profit 2,890 43 2,933 Credit Cost 1,418 - 1,418 Profit Before Tax 1,472 43 1,515 INR Crores