India's HDB Financial posts higher profit on strong credit demand (updated)

HDB Financial Services

14/01/2026 11:46

Adds details on assets under management in paragraph 4, asset quality in paragraph 7

Jan 14 (Reuters) -
India's HDB Financial Services HDBF.NS registered a 36% increase in third-quarter profit on Wednesday, supported by robust loan demand, with asset quality holding steady sequentially.

      Net profit rose to 6.44 billion rupees ($71.3 million) for the quarter ended December 31 from 4.72 billion rupees a year earlier.

Indian lenders reported double-digit loan growth in the October–December period, supported by spending linked to the local festive season and sweeping consumption tax cuts.

HDB Financial, a unit of India's largest private lender HDFC Bank HDBK.NS, said its assets under management rose 12% year-on-year, while its net interest income increased 22.1% to 22.85 billion rupees.

     The results mark HDB's third such quarterly update since its trading debut in July. The firm, which operates more than 1,747 branches across India, posted profit declines in the previous two quarters, weighed down by bad loans.

Analysts have said lenders are beginning to see improvements in unsecured segments, which recorded higher bad loans over the past few quarters following a period of aggressive lending.

     Gross stage 3 loans, meaning those overdue by more than 90 days, stood at 2.81% of total loans at the end of December, unchanged from September-end.

     Loan losses and provisions rose 12% year-on-year, but fell nearly 5% from a quarter ago.

($1 = 90.3580 Indian rupees)

 (Reporting by Nishit Navin; Editing by Ronojoy Mazumdar)

 ((Nishit.Navin@thomsonreuters.com;))