Business · India Bureau
HDB Financial Services reports 34% profit surge to ₹780 crore in Q2
Non-banking financial company HDB Financial Services posted a strong quarterly performance with profit after tax climbing 34.2 per cent to ₹780 crore in the September quarter, driven by robust loan demand and lower provisions.
LSN India ·
HDB Financial Services on Wednesday announced robust second-quarter results for FY27, with profit after tax reaching ₹780 crore, a significant jump from ₹581 crore in the same quarter last year. The improvement reflects strong operational performance across key metrics, including higher loan disbursals and improved asset quality.
Net interest income, a key measure of lending profitability, rose 15.6 per cent to ₹2,534 crore during the July-September quarter, compared with ₹2,192 crore in the year-ago period. Total income for the quarter increased 12 per cent to ₹3,188 crore from ₹2,851 crore previously, indicating steady growth across the company's financial services portfolio.
Provision coverage improved during the quarter, with loan losses and provisions declining 2.5 per cent to ₹730 crore from ₹748 crore in the corresponding quarter of the previous fiscal year. This decline suggests improving credit quality and lower stress in the company's loan portfolio.
The company's gross loan book expanded 12 per cent to ₹1.24 lakh crore during the quarter under review, up from ₹1.12 lakh crore a year earlier, demonstrating continued demand for its credit products in the consumer and vehicle financing segments.