HDB Financial July-September Profit Dips 2% on Higher Credit Costs, Expenses

HDB Financial Services Ltd. reported a 2% year-on-year drop in its September quarter net profit to ₹5.81 billion as higher credit costs and overall expenses offset growth in income.

Total revenue rose over 13% on year to ₹45.45 billion, while expenses jumped 17% to ₹37.63 billion. Impairment on financial instruments surged 73% to ₹7.48 billion, weighing on the bottom line.

Net interest income grew 20% on year to ₹21.92 billion, with the net interest margin improving 40 basis points on year to 7.9%. Interest income was up 13% on year to ₹38.87 billion, while finance costs rose 6% to ₹16.94 billion.

Gross non-performing assets stood at 2.81% and net NPAs at 1.27% as of September. 30. Assets under management increased 13% on year to ₹1.12 trillion.

For April–September, net profit slipped 2% on year to ₹11.49 billion, while revenue rose 14% to ₹90.11 billion. Disbursements for the quarter were ₹155.99 billion, up 3% sequentially.

The company declared an interim dividend of ₹2 per share, payable on October. 24.