Slides
Page 1
Q2 FY27 Earnings Presentation October 14, 2026
Page 2
HDB Financial Services Presentation Q2 FY2027 Presentation Path 06 TECHNOLOGY & RISK MANAGEMENT FRAMEWORK 07 SUSTAINABILITY INITIATIVES 050301 ABOUT HDB HDB OVERVIEW BORROWINGS & CAPITAL STRUCTURE 04 FINANCIAL PERFORMANCE – Q2FY27 02 EXECUTIVE SUMMARY – Q2FY27 2
Page 3
HDB Financial Services Presentation Q2 FY2027 • 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 FY2027 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 1,701 branches spread across 1,156 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 ~0.33% 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 FY2027 • 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 FY2027 • 17 6 The Essence of HDB … Our Vision and Mission
Page 7
HDB Financial Services Presentation Q2 FY2027 • 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 FY2027 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 FY2027 • 17 9 Executive Summary Q2FY27 2 Key Parameters1 Key Highlights – Q2FY27 Section 2
Page 10
HDB Financial Services Presentation Q2 FY2027 Gross NPA: 2.43% Net NPA : 1.09% Earnings/share : ₹ 9.4 Book Value/share: ₹ 266.7 Net Interest Margin: 8.23% Q2 PAT ₹ 780 Cr Return on Assets: 2.42% Return on Equity : 14.4% Gross Loan Book ₹ 1,24,469 Cr Key Parameters – Q2 FY27 10 24.8 MM Customers 1,701 Branches across 1,156 Cities/ Towns
Page 11
HDB Financial Services Presentation Q2 FY2027 Key Highlights – Q2 FY27 (1/3) 11 Business metrics Customer franchise grew to 24.8 million with an increase of 18.4% Y-o-Y and 3.9% during the quarter Gross loan book as on September 30, 2026 stood at ₹1,24,469 crores, growing 11.7% Y-o-Y and 2.2% sequentially. Secured loans comprised 74% of the Gross loan book Disbursements for the quarter ended September 30, 2026 was ₹18,522 crores, up by 18.7% Y-o-Y and 5.1% Q-o-Q Branch count stood at 1,701 spread across 1,156 cities and towns P&L Metrics Net interest income for the quarter was ₹2,534 crores, an increase of 15.6% Y-o-Y and 1.0% Q-o-Q Net Interest Margin for Q2FY27 was at 8.23% vs 7.95% in Q2FY26 & 8.35% in Q1FY27 Cost to Income ratio for lending business was 39.3% in Q2FY27 as compared to 40.7% in Q2FY26 & 39.9% in Q1FY27
Page 12
HDB Financial Services Presentation Q2 FY2027 Key Highlights – Q2 FY27 (2/3) 12 P&L Metrics (contd…) Credit Cost for the quarter was ₹730 crores as against ₹748 crores for the quarter ended September 30, 2025 and 697 crores for the prior quarter Profit after tax for the quarter ended September 30, 2026 was ₹780 crores as against ₹581 crores for the quarter ended September 30, 2025 and ₹785 crores for the prior quarter Asset Quality Gross Stage 3 / GNPA as at September 30, 2026 was 2.43% as against 2.81% as at September 30, 2025 and 2.34% as at June 30, 2026 Provision Coverage on the Stage 3 book stood at 55.00%
Page 13
HDB Financial Services Presentation Q2 FY2027 Key Highlights – Q2 FY27 (3/3) 13 Return Metrics RoA (annualized) for the quarter ended September 30, 2026 stood at 2.42% RoE (annualized) for the quarter ended September 30, 2026 stood at 14.4% Earnings per share for the quarter was ₹9.4 and Book Value per share stood at ₹266.7 Borrowing Metrics Our Borrowing mix remains well-diversified with 43% of our borrowings as on September 30, 2026 coming from bank loans, 28% from NCDs, rest from a mix of other instruments Capital & Liquidity Metrics We remain well capitalized with total CRAR of 21.37% as at September 30, 2026 Dividend Interim dividend of ₹2 per equity share of face value of ₹10 each; Record date October 23, 2026 Employee Metrics Employee Count was 61,522 for the lending business
Page 14
HDB Financial Services Presentation Q2 FY2027 • 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 FY2027 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 24.8MM Customers 2.43% GNPA 2.42% RoA 14.4% RoE INR 1,245 Bn Gross Loan Book INR 7.8 Bn PAT 1.09% NNPA 4.9x Debt/ Equity Key Metrics (Q2FY27) 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 Gross Loan Book Mix 37.6%, Enterprise Lending 36.6%, Asset Finance 25.8%, Consumer Finance Sep-26 Note: Data as on September 30, 2026; RoA and RoE are quarterly annualized
Page 16
HDB Financial Services Presentation Q2 FY2027 Key Metrics 16 Profitability and Returns INR 7.8 Bn PAT 2.42% RoA 14.4% RoE Asset Quality 2.43% GNPA 1.09% NNPA 2.37% Credit Cost Growth (QoQ/YoY) 2.2% / 11.7% Gross Loan Book Growth -0.6% / 34.2% PAT Growth 3.9% / 18.4% Customers Growth Scale INR 1,245 Bn Gross Loan Book 24.8 MM Customers 1,701 Branches Note: Data as on September 30, 2026; Credit Cost, RoA and RoE are quarterly annualized
Page 17
HDB Financial Services Presentation Q2 FY2027 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 ATS2 (INR) Avg. Tenor3 Fee Products General Insurance Life Insurance Health Insurance INR 1,245 BN2 Gross Loan Book Notes: (1) As at Sep 30, 2026 (2) On loans outstanding as at Sep 30, 2026 (3) As at Sep 30, 2026 ~10 yrs 4.6MM 22% ~9 yrs 1.4MM 2% ~4 yrs 306K 9% ~5 yrs 360K 3% ~3 yrs 321K 2% ~1 yr 18K 6% ~4 yrs 442K 9% ~3 yrs 50K 3% ~2 yrs 58K 8% ~2 yrs 29K 0% ~4 yrs 908K 24% ~4 yrs 2.0MM 10% ~4 yrs 310K 3% Loan Book Mix1
Page 18
HDB Financial Services Presentation Q2 FY2027 14% 12% 9% 7% 6% 6% 5% 5%5% 4% 4% 4% 3% 3% 3% 3% 2% 2% 1%1% 2% Jharkhand Punjab Loan Book Mix 18 Product Mix Geographic Mix Notes: As at September 30, 2026 22% 2% 9% 3% 2% 16% 8% 8% 2% 2% 1% 6% 7% 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 Uttar Pradesh Tamil Nadu Maharashtra Rajasthan Gujarat Madhya Pradesh Karnataka Delhi/NCRAndhra Pradesh West Bengal Haryana Telangana Kerala Bihar Assam Others Odisha Chhattisgarh Uttarakhand
Page 19
HDB Financial Services Presentation Q2 FY2027 Omni-Channel Distribution with Pan-India Branch Network 19 North 31% South 27% East 17%West 25% Tier 1 11% Tier 2 9% Tier 3 9%Tier 4 & Beyond 71% Strong Presence Beyond Metro Markets (1) Wide Distribution Presence(1) 1,701 Branches 31 States and UTs 1,156 Towns and Cities Balanced Presence Across Geographies (1) 165,000+ Retailers and Dealer Touchpoints 24.8MM 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 215 Tamil Nadu 46 Kerala 60 Karnataka 168 Maharashtra 129 Madhya Pradesh 2 Goa 1 Dadra & Nagar Haveli and Daman & Diu 124 Gujarat 141 Rajasthan 45 Haryana 3 Chandigarh 54 Punjab 17 Himachal Pradesh 16 Uttarakhand 41 Delhi/NCR 213 Uttar Pradesh 1 Sikkim 1 Arunachal Pradesh 4 Puducherry 81 Andhra Pradesh 54 Telangana 24 Chhattisgarh 53 Odisha 31 Jharkhand 75 West Bengal 1 Mizoram 68 Bihar 2 Tripura 2 Meghalaya 25 Assam 4 Jammu & Kashmir Notes: (1) As at September 30, 2026
Page 20
HDB Financial Services Presentation Q2 FY2027 15.8 19.2 22.9 24.8 Mar-24 Mar-25 Mar-26 Sep-26 Customer Franchise 20 Customer Franchise Growth New Customers Added (MM) Granular Loan Book… …With a Low Customer Concentration ~INR 160,000 Average Ticket Size of Overall Loan Book of Gross Loan Book from 20 Largest Customers ~0.33% 1.6x
Page 21
HDB Financial Services Presentation Q2 FY2027 • 17 Section 4 21 Financial Performance Q2FY27 2 3 4 5 Disbursement & Gross Loan Book Mix1 Profit & Loss Statement Return Metrics Asset Quality Performance through the years
Page 22
HDB Financial Services Presentation Q2 FY2027 38.4% 38.0% 37.8% 37.5% 37.6% 38.0% 38.0% 37.7% 36.9% 36.6% 23.6% 24.0% 24.4% 25.5% 25.8% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Enterprise Lending Asset Finance Consumer Finance Disbursement and Gross Loan Book Mix 22 27.8% 26.9% 31.0% 25.4% 29.4% 32.4% 32.4% 30.5% 25.7% 28.1% 39.8% 40.7% 38.5% 48.9% 42.5% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Enterprise Lending Asset Finance Consumer Finance 111,409 Disbursements Gross Loan Book INR Crores INR Crores 15,599 17,917 114,577 19,922 118,493 17,629 121,846 18,522 124,469
Page 23
HDB Financial Services Presentation Q2 FY2027 Gross Loan Book Mix – Product wise 23 Particulars As at September 30, 2025 As at June 30, 2026 As at September 30, 2026 Loan Against Property 24,033 26,422 27,195 Enterprise Business Loan 2,060 2,365 2,525 Business Loan 12,181 11,497 11,558 Salaried Personal Loan 3,592 3,584 3,547 Gold Loan 990 1,874 2,007 Enterprise Lending 42,856 45,742 46,832 Commercial Vehicle Loans 27,583 29,503 29,750 Construction Equipment Loans 11,672 12,444 12,641 Tractor Loans 3,037 3,062 3,174 Asset Finance 42,292 45,009 45,565 Consumer Durables Loans 4,610 6,759 6,869 Auto Loans 9,085 10,584 11,070 Two-Wheeler Loans 3,412 3,747 3,586 Relationship Personal Loan 8,629 9,448 9,973 Micro Lending 525 558 573 Consumer Finance 26,261 31,095 32,071 Gross Loan Book 1,11,409 121,846 1,24,469 INR Crores
Page 24
HDB Financial Services Presentation Q2 FY2027 Particulars Q2FY26 Q1FY27 Q2FY27 QoQ YoY Gross Loan Book 1,11,409 1,21,846 1,24,469 2.2% 11.7% Interest income 3,887 4,262 4,351 2.1% 11.9% Finance cost 1,694 1,753 1,817 3.6% 7.3% Net Interest Income 2,192 2,509 2,534 1.0% 15.6% Non-Interest Income 339 363 357 -1.6% 5.5% Net Income 2,531 2,872 2,891 0.7% 14.2% Employee cost 679 759 747 -1.6% 9.9% Other Operating Expenses 350 386 389 0.6% 11.0% Total expenses 1,029 1,146 1,135 -0.9% 10.3% Pre-Provisioning Operating Profit 1,502 1,726 1,756 1.7% 16.9% Credit Cost 748 697 730 4.7% -2.5% Profit Before Tax – Lending 753 1,029 1,026 -0.3% 36.2% BPO Income (Net) 29 26 18 -31.0% -37.7% Tax Expense 201 270 263 -2.4% 31.2% Profit After Tax 581 785 780 -0.6% 34.2% Profit & Loss Statement 24 INR Crores
Page 25
HDB Financial Services Presentation Q2 FY2027 Segment P&L Statement 25 Particulars Q2FY26 Q1FY27 Q2FY27 Lending BPO Total Lending BPO Total Lending BPO Total Interest income 3,887 - 3,887 4,262 - 4,262 4,351 - 4,351 Finance cost 1,694 - 1,694 1,753 - 1,753 1,817 - 1,817 Net Interest Income 2,192 - 2,192 2,509 - 2,509 2,534 - 2,534 Non Interest Income 339 320 659 363 313 676 357 297 655 Net Income 2,531 320 2,851 2,872 313 3,185 2,891 297 3,188 Employee cost 679 278 958 759 276 1,035 747 270 1,016 Other Operating Expenses 350 13 363 386 11 397 389 10 398 Total expenses 1,029 292 1,321 1,146 287 1,432 1,135 279 1,415 Pre-Provisioning Operating Profit 1,502 29 1,530 1,726 26 1,752 1,756 18 1,774 Credit Cost 748 - 748 697 - 697 730 - 730 Profit Before Tax 753 29 782 1,029 26 1,055 1,026 18 1,044 INR Crores
Page 26
HDB Financial Services Presentation Q2 FY2027 Income Metrics – Lending Business 26 Net Interest Income INR Crores Yield, COF & NIM (%) 2,192 2,509 2,534 Sep-25 Jun-26 Sep-26 Non-Interest Income INR Crores 2,531 2,872 2,891 Sep-25 Jun-26 Sep-26 14.08 14.19 14.13 6.14 5.84 5.90 Sep-25 Jun-26 Sep-26 Yield CoF Net Total Income 7.95 8.35 8.23 NIM QoQ 1.0% YoY 15.6% QoQ 0.7% YoY 14.2% INR Crores 339 363 357 Sep-25 Jun-26 Sep-26 QoQ -1.6% YoY 5.5%
Page 27
HDB Financial Services Presentation Q2 FY2027 Operating Expenses – Lending Business 27 679 759 747 350 386 389 Sep-25 Jun-26 Sep-26 Employee Cost Other Operating Expenses 40.7% 39.9% 39.3% Sep-25 Jun-26 Sep-26 3.7% 3.8% 3.7% Sep-25 Jun-26 Sep-26 1,146 Operating Expenses Cost-to-Income Ratio Opex to Avg. Gross Loans (annualized) INR Crores 1,029 1,135
Page 28
HDB Financial Services Presentation Q2 FY2027 753 1,029 1,026 29 26 18 Sep-25 Jun-26 Sep-26 Lending BPO Services Profitability Metrics 28 Profit After Tax INR Crores 581 785 780 Sep-25 Jun-26 Sep-26 QoQ -1.1% YoY 33.4% QoQ -0.6% YoY 34.2% 1,055 1,502 1,726 1,756 Sep-25 Jun-26 Sep-26 QoQ 1.7% YoY 16.9% Pre-Provisioning Operating Profit (Lending) Profit Before Tax INR Crores INR Crores 782 1,044
Page 29
HDB Financial Services Presentation Q2 FY2027 Return Metrics 29 7.0 7.8 9.0 9.5 9.4 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 233.1 239.0 248.9 256.7 266.7 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 INR INR 1.9% 2.2% 2.5% 2.5% 2.4% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 12.2% 13.1% 14.8% 15.0% 14.4% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Return on Assets Return on Equity Earnings Per Share Book Value Per Share Note: RoA and RoE are quarterly annualized; EPS and Book Value per share is for the quarter.
Page 30
HDB Financial Services Presentation Q2 FY2027 748 697 730 Sep-25 Jun-26 Sep-26 Credit Cost Asset Quality (1/2) 30 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Stage-wise Loan Book Gross Loans 1,11,409 1,14,577 1,18,493 1,21,846 1,24,469 Stage 1 1,05,794 1,09,103 1,13,823 1,16,704 1,18,876 Stage 2 2,489 2,260 1,774 2,290 2,571 Stage 3 3,126 3,215 2,896 2,852 3,022 Provision Coverage Stage 1 1,441 1,450 1,837 1,872 1,937 Stage 2 498 448 359 454 490 Stage 3 1,711 1,787 1,608 1,589 1,662 2.71% 2.32% 2.37% As a % of Avg. Loan Book QoQ 4.7% YoY -2.5% Credit Cost Loan Book Staging INR Crores INR Crores Note: Stage 3 includes all loans which have been classified as NPA as per extant guidelines
Page 31
HDB Financial Services Presentation Q2 FY2027 Asset Quality (2/2) 31 Vertical-wise Provision Coverage on Stage 3 Book INR Crores Sep-25 Jun-26 Sep-26 Loan Book GS3 NS3 PCR Loan Book GS3 NS3 PCR Loan Book GS3 NS3 PCR Enterprise Lending 42,856 826 395 52% 45,742 741 378 49% 46,832 761 401 47% Asset Finance 42,292 1,800 865 52% 45,009 1,605 733 54% 45,565 1,735 806 54% Consumer Finance 26,261 499 155 69% 31,095 506 151 70% 32,071 526 152 71% Total 1,11,409 3,126 1,415 55% 1,21,846 2,852 1,263 56% 1,24,469 3,022 1,360 55% Note: Stage 3 includes all loans which have been classified as NPA as per extant guidelines
Page 32
HDB Financial Services Presentation Q2 FY2027 Financial Snapshot (INR Crores) FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 3 Yr CAGR 10 Yr CAGR AUM 25,906 34,277 44,469 55,425 58,833 61,561 61,444 70,084 90,235 107,262 1,18,733 19.2% 16.4% Total Income (Lending) 3,222 4,380 5,533 7,077 8,643 8,924 8,943 9,769 12,222 15,084 17,206 20.8% 18.2% Interest Expenses (Lending) 1,572 2,050 2,357 3,333 4,081 3,883 3,326 3,512 4,864 6,390 6,820 24.8% 15.8% Net Total Income (Lending) 1,651 2,330 3,176 3,743 4,562 5,041 5,617 6,257 7,357 8,693 10,386 18.4% 20.2% Operating Expenses (Lending) 649 950 1,261 1,456 1,760 1,576 1,939 2,440 3,143 3,724 4,266 20.4% 20.7% Credit Cost (Lending) 194 340 519 637 1,442 3,069 2,466 1,330 1,067 2,113 2,815 28.4% 30.7% Profit before tax (Lending) 807 1,040 1,396 1,651 1,360 396 1,213 2,487 3,147 2,857 3,305 10.0% 15.1% Net BPO Income 10 18 69 73 104 104 135 141 158 71 81 -16.8% 23.3% Profit after tax 534 699 952 1,153 1,005 391 1,011 1,959 2,461 2,176 2,544 9.1% 16.9% Ratios Cost to Income (Lending) 39.3% 40.8% 39.7% 38.9% 38.6% 31.3% 34.5% 39.0% 42.7% 42.8% 41.1% Credit Cost to Avg. Gross Loans 0.9% 1.2% 1.4% 1.3% 2.5% 5.1% 4.0% 2.0% 1.3% 2.1% 2.5% Return on Assets 2.4% 2.4% 2.4% 2.3% 1.7% 0.6% 1.6% 3.0% 3.0% 2.2% 2.2% Return on Equity 16.0% 15.7% 16.5% 17.2% 13.2% 4.8% 11.2% 18.7% 19.5% 14.7% 13.9% Gross NPA 1.2% 1.5% 1.6% 1.8% 3.9% 4.5% 5.0% 2.7% 1.9% 2.3% 2.4% Net NPA 0.7% 0.8% 1.0% 1.2% 3.1% 3.1% 2.3% 1.0% 0.6% 1.0% 1.1% Provisioning Coverage Ratio 41.1% 42.4% 39.7% 32.2% 19.4% 31.7% 54.1% 65.1% 66.8% 56.0% 55.5% CRAR 19.2% 20.8% 17.9% 17.9% 19.4% 18.9% 20.2% 20.1% 19.2% 19.2% 21.4% Leverage Ratio 6.27 5.38 6.41 7.14 6.93 7.02 5.77 5.26 5.81 6.00 5.03 Performance Through The Years (1/2) 32COVID-19 period
Page 33
HDB Financial Services Presentation Q2 FY2027 Performance Through The Years (2/2) 33 Gross Loan Book and RoA Capital Position and RoE 2.4% 2.4% 2.4% 2.3% 1.7% 0.6% 1.6% 3.0% 3.0% 2.2% 2.2% -6.5% -1.5% 3.5% 10,000 30,000 50,000 70,000 90,000 1,10,000 1,30,000 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Loan Book RoA % 19.2% 20.8% 17.9% 17.9% 19.4% 18.9% 20.2% 20.1% 19.2% 19.2% 21.4% 16.0% 15.7% 16.5% 17.2% 13.2% 4.8% 11.2% 18.7% 19.5% 14.7% 13.9% -50.0% -30.0% -10.0% 10.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 CRAR ROE % INR Crores
Page 34
HDB Financial Services Presentation Q2 FY2027 • 17 Section 5 34 Borrowings & Capital Structure 2 Liability Franchise1 Capital & Liquidity Metrics 3 Asset Liability Management 4 Shareholding Pattern
Page 35
HDB Financial Services Presentation Q2 FY2027 Term loans and Working Capital Demand Loans, 43.4% Non-Convertible Debentures, 28.5% External Commercial Borrowings, 12.1% Sub debt, 5.0% Securitsation, 5.7% Perpetual debt, 1.5% Commercial paper, 3.9% Liability Franchise 35 5.0x 5.0x 5.0x 5.0x 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 92,230 95,113 99,230 1,02,134 1,04,441 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Liabilities Break-up Borrowings Overview As on Sep-26 INR Crores 7.27% 7.28% 6.93% 6.97% 7.04% Cost of Borrowings (quarterly annualized)
Page 36
HDB Financial Services Presentation Q2 FY2027 Capital & Liquidity Metrics 36 17.26% 17.28% 17.06% 17.15% 17.36% 4.56% 4.53% 4.34% 4.14% 4.01% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 21.82% 21.81% 21.40% 21.29% 174% 163% 177% 159% 21.37% 164% CRAR LCR Tier-I Capital Tier-II Capital Note: LCR is calculated basis daily averages for the respective quarters
Page 37
HDB Financial Services Presentation Q2 FY2027 37 Asset Liability Management – September 2026 Inflows Outflows Particulars Less than one month Over one month to 2 months Over 2 months to 3 months Over 3 Months to 6 months Over 6 Months to 1 year Over 1 year to 2 years Over 2 year to 3 years Over 3 years to 5 years Over 5 years Inflows 14,308 5,092 5,116 15,401 27,845 28,135 19,228 19,529 15,424 Outflows 5,406 4,489 4,364 13,339 34,232 25,126 27,195 8,266 27,660 Cumulative Mismatch 8,902 9,505 10,256 12,318 5,931 8,941 973 12,236 0 Positive cumulative mismatch across all time-buckets INR Crores
Page 38
HDB Financial Services Presentation Q2 FY2027 Shareholding Pattern 38 Promoter Group, 74.1% Institutional Investors, 16.0% Retail & Others, 9.9% ` Top Institutional Holdings: Domestic Mirae MFs Kotak MFs ICICI Prudential MFs SBI MFs Nippon MFs Notes: (1) Holdings as on 30th Sept-2026 (2) Institutional Investors include MFs, Insurance Cos, FPIs, AIFs, Nationalised Banks & Provident Funds/Pension Funds Top Institutional Holdings: Foreign Vanguard MFS Investment Management Baillie Gifford Daiwa Asset Management Government Pension Fund Global
Page 39
HDB Financial Services Presentation Q2 FY2027 Risk Management Framework • 17 Section 6 39 Technology & Risk Management Framework 2 Technology Stack1 Digital Capability 3 Shikhar: AI-Powered Transformation Journey 4
Page 40
HDB Financial Services Presentation Q2 FY2027 Technology Stack 40 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 41
HDB Financial Services Presentation Q2 FY2027 Digital Capabilities – “HDB OnTheGo” App 41 DAU / MAU: Daily active users / Monthly active users
Page 42
HDB Financial Services Presentation Q2 FY2027 FOCUS AREA SHORT TERM (FY27+) SHORT TERM IMPACT MEDIUM TERM (FY29+) MEDIUM TERM IMPACT 1. CUSTOMER ONBOARDING • AI-powered document processing for CD, Digital Product Loans and pre-approved loans • Gen AI-powered voice- based loan journeys for NTB customers 500K Documents/day 1.2x Sales productivity +10% Conversion • End-to-end AI-driven consumer loan journeys 1.5x Sales productivity +25% Conversion 2. CUSTOMER ENGAGEMENT • Product discovery content at scale • Outbound Gen AI Voice BOTs • Voice-to-data conversion for all customer interactions • AI-generated next best offers 8M+ Customer reach +10% CSAT • AI-enabled experiences across apps and web • Reimagined journeys with document vision, summaries and semantic search 50% Productivity improvement 3. CUSTOMER SERVICING • AI-powered email and voice insights • Agentic AI for CDU operations 50% CDU process TAT reduction • Gen AI Voice BOT-led inbound servicing • NLP-powered self- service 50% Servicing automation 10% Reduction in servicing cost 4. CREDIT & COLLECTIONS • AI-based thin-file underwriting • Gen AI Voice BOT- based early-bucket calling • Vision AI + anomaly- based fraud detection 20% 35% Collections automation 20% Fraud loss reduction 5% Auto cure of portfolio • Scale Gen AI Voice BOT collections • Enterprise AI fraud framework • Expand data variables for thin-file customers 30% Agent productivity 20 bps Reduction in Credit Cost Shikhar: AI-Powered Transformation Journey 42 ENHANCING CUSTOMER JOURNEYS | DRIVING EFFICIENCIES | DELIVERING MEASURABLE IMPACT ASCEND • Personalized offers • AI-powered cross-sell • Customer retention & growth 2 ASSURE • Intelligent collections • Fraud prevention • Better recovery & reduced risk 1 ACQUIRE • AI-driven acquisition • Seamless onboarding • Faster approvals 2 3
Page 43
HDB Financial Services Presentation Q2 FY2027 Risk Management Framework 43 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 44
HDB Financial Services Presentation Q2 FY2027 • 17 Section 7 44 Sustainability Initiatives 2 Environment, Social & Governance (ESG) 1 Corporate Social Responsibility (CSR)
Page 45
HDB Financial Services Presentation Q2 FY2027 ESG Framework 45 Ethical Conduct Conduct business ethically, having value driven approach in decision making Impact Reporting Reporting the measurable impacts of business activities on the environment and society. Continuous ESG Improvement Continuous evaluation and adoption of relevant measures to improve upon ESG Maturity. Robust Compliance Ensuring robust compliance management with applicable statutory and regulatory guidelines. Integrate ESG Ideology Embedding the Company’s ESG ideology and identifying ESG related risks and adverse incidents that can the affect business operations. Stakeholder Commitment Demonstrate organizational commitment to stakeholders, meeting their requirements and expectations. ESG Framework
Page 46
HDB Financial Services Presentation Q2 FY2027 ESG Priorities 46
Page 47
HDB Financial Services Presentation Q2 FY2027 RATING AGENCY CRISIL SES NSE SUSTAINALYTICS RATINGS 68/100 71.7/100 68/100 21.2 MEANING Indicates strong ESG performance Indicates good ESG performance Indicates early stage ESG maturity with good potential Indicates medium ESG risk exposure (Lower is better) Our ESG Ratings – FY26 47 STRONG GOOD ASPIRING MEDIUM RISK NEGL LOW MED HIGH SEVERE 0-10 10-20 20-30 30-40 40-50
Page 48
HDB Financial Services Presentation Q2 FY2027 ESG Highlights 48 ENVIRONMENT CSR & ESG committee at the Board level and ESG policy framework approved by Board members GOVERNANCE More than 75 % independent directors on the board. 2 Women Independent directors on the board Established ESG Steering committee consisting of senior management team to strengthen ESG governance. Assigned ESG rating of 21.2 by Sustainalytics underscoring our robust risk management and ESG practices (lower score is better). Mandatory training to all eligible employees on POSH, Cybersecurity, Health & Safety and wellbeing of employees, and ESG & BRSR (above grade 6A) Achieved ISO 22301:2019 & ISO 27001:2022 Certification thereby demonstrating business continuity management & robust IT operations 1 2 3 6 5 4 SOCIAL
Page 49
HDB Financial Services Presentation Q2 FY2027 Corporate Social Responsibility – Key Highlights 49 14 CSR Programs 100+ Social & Environmental Projects Supported 78 Partners Empaneled ₹ 3,098 Mn Spent on CSR Initiatives Note: Figures since inception
Page 50
HDB Financial Services Presentation Q2 FY2027 Corporate Social Responsibility – Key Highlights 50 > 24,464 tons of waste diverted from entering into landfills and waterbodies with support of local authorities > 6,30,000 trees planted to create carbon sinks, promote afforestation, and create livelihoods 8 active transport aarogyam kendras – physiotherapy centers for truck drivers 1,126 waterbodies restored to recharge groundwater tables & create storage capacity at surface level 4,035 diagnostic camps conducted promoting preventive care for overall health & well-being 332 sanitation complex retrofitted making safe sanitation accessible in schools and communities 215 patient beds (including OTs) introduced in charitable hospitals for improved reach > 16,54,000 lives impacted through initiatives in the areas of healthcare, livelihoods, environment & others 1,671 financial literacy workshops conducted Note: Figures since inception
Page 51
HDB Financial Services Presentation Q2 FY2027 Physiotherapy for Truck Drivers Maternal Child Health & Nutrition Free OPD Services in Rural Areas Safe Sanitation Complex, WASH Water Conservation Measures Promoting Employability skillsFinancial Literacy ProgramPromoting Rural LivelihoodsSkill Enhancement Program CSR: Intervention Themes 51 Environment (Water + Waste + Plantation) Literacy & Livelihoods (Employability Skills + Financial Literacy) Healthcare (Preventive + Curative + Capacity) Promoting Waste Management Reviving Water bodies Tree Plantation Drives
Page 52
HDB Financial Services Presentation Q2 FY2027 • 3 Safe Harbour Statement 52 This presentation has been prepared by Company based on information available to them and the information contained herein has not been independently verified. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. Furthermore, no person is authorized to give any information or make any representation, which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the Company. The Presentation does not constitute or form part of and should not be construed as a prospectus, offering circular or offering memorandum or an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates under the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Securities and Exchange Board of India (Issue and Listing of Non-convertible Securities) Regulations, 2021 or any other applicable law, as amended from time to time, or as an inducement to enter into investment activity, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment whatsoever. You are advised to independently assess and take your own independent decisions without being influenced by the views and opinions of the authors. Investments in financial products/services/securities/instruments inherently involve risks and you may consult your legal, tax and financial advisors before investing. Past performance is not a guide/ indicative of future returns and may not necessarily provide a basis for comparison with other investments. No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The Company expects the media to access this Presentation and seek the management’s commentaries and opinions thereon. The Company does not take any responsibility for any opinions or reports which may be published or expressed by any media agency (digital or print), without the prior authorisation of the Company’s authorized personnel. Certain statements made in this presentation may be “forward looking statements” for purposes of laws and regulations of India and other countries, as applicable. These statements may include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition, general business plans and strategy, the industry in which the Company operates and the general, business, competitive and regulatory environment of the Company. These statements can be recognized by the use of words such as “expect,” “plan,” "planning," "planned," “estimates,” “projects,” "anticipate," "believe," "considering," "depends," "intend," "trend," “aim”, “continue”, “objective”, “goal”, “potential”, “pursue”, “shall”, “should”, “will”, “would”, “could”, “may”, or other words of similar meaning or similar expressions or the negative thereof, concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies, markets and the industries in which the Company operates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements. All forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control and rely on various assumptions of the Company concerning future events and are subject to a number of factors including, without limitation, economic and competitive risks, that could cause actual results, performance or achievements to differ materially from those described in the forward-looking statements. Similarly, statements about market and industry trends are based on interpretations of current market conditions which are also subject to change. Past performance should not be taken as an indication or guarantee of future performance or results, and no representation or warranty, express or implied, is made regarding future performance or that the events expressed or implied in any forward-looking statements in this presentation will actually occur. Accordingly, there can be no assurance that such projections and forward-looking statements will be realized. Caution should be taken with respect to such statements, and undue reliance should not be placed on any such forward-looking statements. The financial figures, information, data and ratios (audited and unaudited) provided in this presentation are management representation based on internal financial information system of the Company. These financial figures are based on restatement of certain line items in the consolidated financial statements of the Company and describe the manner in which the management of the Company monitors the financial performance of the Company. There is a possibility that these financial results for the current and previous periods may require adjustments due to changes in financial reporting requirements arising from new standards, modifications to the existing standards, guidelines issued by the Ministry of Corporate Affairs and RBI. This document is given solely for general information purposes only and may not be retained nor may this document, or any portion thereof, be shared, copied, reproduced or redistributed to any other person in any manner.
Page 53
HDB Financial Services Presentation Q2 FY2027 Thank You For More Information please contact: Email: investorcommunications@hdbfs.com