India's HDB Financial Services posts quarterly profit rise on loan demand, lower provisions

HDB Financial Services

14/10/2026 12:31

Oct 14 (Reuters) - Indian non-bank lender HDB Financial Services HDBF.NS posted a 34.2% rise in second-quarter profit on Wednesday, supported by improved loan demand and lower provisions.
Net profit rose to 7.8 billion rupees ($81.98 million) for the quarter ended September 30, from 5.81 billion rupees a year earlier.
The company, a unit of top Indian lender HDFC Bank, said its assets under management rose 11.6% year-on-year to 1.25 trillion rupees
Loan losses and provisions fell 2.4% year-on-year to 7.3 billion rupees
HDB Financial grappled with elevated bad loans in the first half of the previous fiscal year
It has been trying to improve its asset quality by following a more cautious approach to lending in stressed segments, including unsecured business loans, commercial vehicles, and construction equipment
Net interest income - the difference between interest earned and paid - climbed nearly 12% to 43.51 billion rupees.
The lender's net interest margin contracted to 8.2% from 8.4% a quarter ago and 7.9% a year earlier
Gross stage 3 loans - those overdue by more than 90 days - stood at 2.43% of total loans at the end of September, up from 2.34% at June-end, and down from 2.81% in the year-ago quarter

     
($1 = 95.1500 Indian rupees)

 (Reporting by Mridula Kumar in Bengaluru; Editing by Janane Venkatraman)
 ((mridula.kumar@thomsonreuters.com))