HDB Financial Services (IFC-40789)

Countries
  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 21, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
HDB Financial Services Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 144.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 12, 2021

Disclosed by Bank May 16, 2018


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Project Description

This investment comprises of a senior debt investment in HDB Financial Services Limited, based in India. HDB Financial Services Limited is a non-banking finance company, providing financing to micro-small and medium enterprises across India. 

Investment Description
Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

HDB Financial Services Limited, a non-banking financial company, provides financing, collection, and insurance services in India. The company operates through Lending Business and Business Process Outprocessing (BPO) services segments.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - HDB Financial Services Limited Client -
Canadian Solar Energy Hldg Parent Company Energy owns Fermi Solarfarms Pvt Ltd Client Energy
Flash Electns (India) Pvt Ltd Parent Company Communications owns Flash Viven Machining Tech Pvt Client Communications
G R Infraprojects Ltd Parent Company Transport owns GR Phagwara Expressway Ltd Client Transport
GMR Enterprises Pvt Ltd Parent Company Energy owns GMR Chhattisgarh Energy Pvt Client Energy
HDFC Bank Investor Finance invests in Acquisition of 51.11% Stake in Hindustan Petroleum Client Mining
HDFC Bank Investor Finance invests in Arvind Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in Ashok Leyland Ltd Parent Company Transport
HDFC Bank Investor Finance invests in Bamnipal Steel Ltd Client Mining
HDFC Bank Investor Finance invests in Bharat Forge Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Bharat Petroleum Corp Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Bhushan Steel Ltd Client Mining
HDFC Bank Investor Finance invests in Bijapur Hungund Tollway Pvt Parent Company Construction
HDFC Bank Investor Finance invests in Binjhabahal to Telebani Client Transport
HDFC Bank Investor Finance invests in Biocon Biologics India Ltd Parent Company Education and Health
HDFC Bank Investor Finance invests in Canadian Solar Energy Hldg Parent Company Energy
HDFC Bank Investor Finance invests in CESC Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Energy Efficiency Services Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Fermi Solarfarms Pvt Ltd Client Energy
HDFC Bank Investor Finance invests in Flash Electns (India) Pvt Ltd Parent Company Communications
HDFC Bank Investor Finance invests in Flash Viven Machining Tech Pvt Client Communications
HDFC Bank Investor Finance invests in Food Corporation of India Parent Company Agriculture and Forestry
HDFC Bank Investor Finance invests in G R Infraprojects Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Gateway Distriparks Ltd Parent Company Transport
HDFC Bank Investor Finance invests in GMR Chhattisgarh Energy Pvt Client Energy
HDFC Bank Investor Finance invests in GMR Enterprises Pvt Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Godrej Properties Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in GR Phagwara Expressway Ltd Client Transport
HDFC Bank Investor Finance invests in Grasim Industries Ltd Parent Company Agriculture and Forestry
HDFC Bank Investor Finance invests in Haldia Energy Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Hero Cycles Ltd Parent Company Transport
HDFC Bank Investor Finance invests in Hindustan Petroleum Corp Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Indian Oil Corp Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Intas Pharmaceuticals Ltd Parent Company Education and Health
HDFC Bank Investor Finance invests in Jaguarlandrover Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in Jubilant Life Sciences Ltd Parent Company Education and Health
HDFC Bank Investor Finance invests in Kalpataru Power Transmission Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Larsen & Toubro Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Mahindra & Mahindra Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Mahindra Renewables Pvt Ltd Client Energy
HDFC Bank Investor Finance invests in Mangalore Refinery & Petrochemicals Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Montecarlo Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Montecarlo Singhara Parent Company Transport
HDFC Bank Investor Finance invests in Motherson Sumi Systems Ltd Parent Company Communications
HDFC Bank Investor Finance invests in Nabha Power Ltd Parent Company Energy
HDFC Bank Investor Finance invests in NHPC Ltd Parent Company Energy
HDFC Bank Investor Finance invests in NTPC Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Nuclear Power Corp of India Ltd{NPCIL} Parent Company Energy
HDFC Bank Investor Finance invests in Ocean Sparkle Ltd Parent Company Transport
HDFC Bank Investor Finance invests in Offbeat Developers Pvt Ltd Client Industry and Trade
HDFC Bank Investor Finance invests in Oil & Natural Gas Corp Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Oil and Natural Gas Corporation Parent Company Mining
HDFC Bank Investor Finance invests in Oriental Structural Engineers Parent Company Transport
HDFC Bank Investor Finance invests in Piramal Enterprises Ltd Parent Company Education and Health
HDFC Bank Investor Finance invests in Power Grid Corp of India Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Reliance Industries Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Reliance Utility & Power Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Ryhpez Holding (Sweden) AB Parent Company Transport
HDFC Bank Investor Finance invests in Samvardhana Motherson Client Transport
HDFC Bank Investor Finance invests in Sanghi Inds Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Sanghi Industries Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Sikka Ports & Terminals Ltd Parent Company Transport
HDFC Bank Investor Finance invests in SLMG Beverages Pvt Ltd Parent Company Agriculture and Forestry
HDFC Bank Investor Finance invests in SRF Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in Sterlite Grid 2 Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Tata Motors Ltd Parent Company Transport
HDFC Bank Investor Finance invests in Tata Power Co Ltd Parent Company Energy
HDFC Bank Investor Finance invests in Tata Steel Ltd Parent Company Mining
HDFC Bank Investor Finance invests in THDC India Ltd Parent Company Energy
HDFC Bank Investor Finance invests in The Great Eastern Shipping Co Parent Company Transport
HDFC Bank Investor Finance invests in The Phoenix Mills Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in TIL Ltd Parent Company Construction
HDFC Bank Investor Finance invests in Tractors India Pvt Ltd Client Construction
HDFC Bank Investor Finance invests in Vardhman Textiles Ltd Parent Company Industry and Trade
HDFC Bank Investor Finance invests in Vedanta Ltd Parent Company Mining
HDFC Bank Investor Finance invests in Western Region Transmission (Gujarat)Power Ltd Parent Company Energy
Mahindra & Mahindra Ltd Parent Company Energy owns Mahindra Renewables Pvt Ltd Client Energy
Motherson Sumi Systems Ltd Parent Company Transport owns Samvardhana Motherson Client Transport
Oil and Natural Gas Corporation Parent Company Mining owns Acquisition of 51.11% Stake in Hindustan Petroleum Client Mining
Oriental Structural Engineers Parent Company Transport owns Binjhabahal to Telebani Client Transport
Tata Steel Ltd Parent Company Mining owns Bamnipal Steel Ltd Client Mining
Tata Steel Ltd Parent Company Mining owns Bhushan Steel Ltd Client Mining
The Phoenix Mills Ltd Parent Company Industry and Trade owns Offbeat Developers Pvt Ltd Client Industry and Trade
TIL Ltd Parent Company Construction owns Tractors India Pvt Ltd Client Construction

Contact Information

For inquiries about the project

HDB Financial Services Limited 
Mr. Haren Parekh 
Chief Financial Officer 
022-49116767 
Haren.parekh@hdbfs.com 
Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034 
https://www.hdbfs.com/ 

For inquiries and comments about IFC

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/