HDB Financial AGM 2026: Borrowing cap ₹1.5 lakh crore

Shareholders clear major funding resolutions

HDB Financial Services Limited said its shareholders have approved an increase in the company’s borrowing limit from ₹1,35,000 crore to ₹1,50,000 crore. The approvals were taken at the company’s 19th Annual General Meeting (AGM) held on June 25, 2026. The same AGM also cleared the creation of charge on assets up to ₹1,50,000 crore, a step that supports the higher borrowing capacity. Alongside the funding-related items, shareholders approved a final dividend of ₹2 per equity share for FY2025-26.

The set of decisions is significant for a lending business where balance sheet growth and funding headroom directly affect the pace at which assets can be built. The company indicated that the higher borrowing limit will provide greater financial flexibility for business expansion and other requirements.

AGM outcome: all eight resolutions approved

According to the disclosed AGM outcome, shareholders approved all eight resolutions placed before them. The approvals covered ordinary items such as adoption of financial statements and a director retirement-by-rotation item, and special business items that expand funding and capital market options.

The headline items included the borrowing-limit enhancement to ₹1,50,000 crore and approval to create charge on assets up to the same amount. Together, these approvals enable the company to operationalise the increased borrowing ceiling.

Borrowing limit increased to ₹1,50,000 crore

The borrowing limit was increased by ₹15,000 crore, from ₹1,35,000 crore to ₹1,50,000 crore, based on shareholder approval. For NBFCs, such limits typically define how much debt the company can raise within its governance framework.

The company also obtained shareholder approval to create charge on assets up to ₹1,50,000 crore. This matters because secured borrowings and issuance programmes often require security creation over assets. Without a corresponding charge-creation permission, a higher borrowing limit may not translate into immediately usable funding headroom.

Dividend approved: ₹2 per share for FY2025-26

Shareholders approved a final dividend of ₹2 per equity share for FY2025-26. The dividend represents 20% on the face value of ₹10 per share, as stated in the AGM agenda.

The board had proposed the final dividend at its meeting held on April 15, 2026, subject to shareholder approval. During the year, the company also paid an interim dividend of ₹2 per share, aggregating to ₹165.91 crore. The company disclosed that this corresponds to a dividend payout ratio of 13.05% of profits for FY2025-26.

The record date for dividend eligibility was Thursday, June 18, 2026, and the payment was indicated to be made on or after Friday, June 26, 2026.

Securitisation and NCD issuance authorisations

In addition to the borrowing limit and dividend, shareholders authorised securitisation of receivables up to ₹13,000 crore. The approval permits the company to sell, assign, or securitise receivables or book debts within that cap.

Shareholders also authorised the company to issue redeemable non-convertible debentures (NCDs) and/or other debt instruments on a private placement basis up to ₹32,824.72 crore. Such an approval expands the company’s toolkit for raising funds in multiple tranches.

Governance items: chairman appointment and director re-appointment

The AGM agenda included re-appointment of Mr. Jimmy Tata (DIN: 06888364) as a director retiring by rotation.

As part of special business, shareholders approved the appointment of Mr. Natarajan Srinivasan (DIN: 00123338) as Non-Executive Chairman and Independent Director for three years, from May 14, 2026 to May 13, 2029. The approved remuneration for this role was ₹30,00,000 per annum.

FY2025-26 performance: revenue, profitability and margins

HDB Financial Services also reported key financial metrics for FY2025-26 in its annual reporting. Total revenue from operations rose to ₹18,429.67 crore from ₹16,300.28 crore in FY2024-25.

Profit After Tax (PAT) increased 16.91% year-on-year to ₹2,543.83 crore. Net Interest Income (NII) for the year stood at ₹8,968 crore, reflecting 20.45% year-on-year growth. Net Interest Margin (NIM) improved to 7.96% from 7.56% in the previous year. The company reported Assets Under Management (AUM) of ₹1,18,733 crore.

Listing and IPO context cited in disclosures

The company’s equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on July 2, 2025. Separately, the annual reporting referenced a ₹12,500 crore IPO in July 2025 and described it as a landmark public listing.

In an additional market account included in the provided material, the IPO was described as the largest ever by a non-bank lender in India, and was reported to have attracted strong demand, including a subscription rate of 16.7 times, with qualified institutional buyers bidding 55 times their allotted portion.

Market snapshot from exchange screens

Price data included in the material showed HDB Financial Services trading higher on the day of the cited snapshot. On BSE (timestamp shown as Dec 19, 16:01), the stock was quoted at ₹774.50, up ₹27.25 (3.65%), with volume of 101,781.

On NSE (timestamp shown as Dec 19, 15:59), the stock was quoted at ₹772.85, up ₹25.10 (3.36%). Another price point in the material showed ₹674.95 at 15:58 on 15-05-2026.

Key facts table

Why these approvals matter for an NBFC

For an NBFC, growth is closely linked to access to stable funding and the ability to diversify funding sources. A higher borrowing limit increases the governance headroom available for raising debt, while a higher charge-creation limit allows the company to provide security where required. The approvals for securitisation and private placement debt instruments further add optionality for funding across market conditions.

At the same time, the dividend approval confirms a direct return to shareholders for FY2025-26, including the final dividend alongside the interim dividend already paid during the year. The combination of funding authorisations and dividend declarations offers a clearer view of how the company is balancing capital returns with balance sheet flexibility.

Investor communication details shared

The material also listed investor communication coordinates, including an email address: investorcommunications@hdbfs.com and the website: http://www.hdbfs.com. Address and contact listings included Ahmedabad, Gujarat (PIN 380009) and Mumbai, Maharashtra (PIN 400083), along with telephone numbers.

Conclusion and next dates to track

HDB Financial Services’ 19th AGM on June 25, 2026 resulted in shareholder approvals that expand borrowing capacity to ₹1,50,000 crore, permit charge creation up to the same limit, and enable securitisation up to ₹13,000 crore and private placement debt issuance up to ₹32,824.72 crore. Shareholders also approved a final dividend of ₹2 per share for FY2025-26, with the record date on June 18, 2026 and payment on or after June 26, 2026.

With these resolutions in place, the focus will shift to how the company uses the additional funding headroom within its disclosed programmes and timelines, alongside periodic financial updates following FY2025-26 performance reporting.