HDB Financial in the Spotlight — What’s Driving the Buzz After Q1 Update and IPO Stake Sale?

July 04, 2025: HDFC Bank and its subsidiary HDB Financial Services remained in sharp focus on Thursday following key financial disclosures and shareholding updates.

HDFC Bank Reports 16.4% YoY Growth in Q1 Deposits

HDFC Bank reported a 16.4% year-on-year growth in average deposits for the June 2025 quarter, reaching ₹26,580 billion, up from ₹22,831 billion in the same quarter last year. Advances also grew by 8.3% YoY, a notable improvement over the 5.4% growth in Q4, though still trailing the 14.1% advance growth seen earlier.

These numbers reflect a steady recovery in credit demand and stronger deposit mobilization, aligning with broader market trends and boosting investor confidence.

HDB Financial Services Stock Falls After IPO Stake Dilution

Meanwhile, HDB Financial Services witnessed a 2.34% decline in its share price on the BSE, closing at ₹844.85. This comes after a strong two-day rally following its premium IPO listing.

Also read: Is China Testing Its Weapons For Free — And Are We Ready For The Next Move?

On Wednesday, HDFC Bank notified the exchanges of a stake sale of 13.51 crore shares of HDB Financial Services, each with a face value of ₹10. Following the transaction, HDFC Bank’s shareholding in HDBFS dropped to 74.19% of its total paid-up equity capital.

The stock’s pullback is seen as a natural correction post-listing surge, but analysts remain bullish on the company’s long-term growth potential.

Market Outlook

With HDFC Bank showing healthy deposit growth and HDB Financial Services entering the public market, both stocks are expected to remain under investor watch. Analysts will be closely tracking further updates from the bank, particularly around lending momentum and IPO-related developments.

---