HDB Financial’s Q2 Profit Rises 34% as Loan Disbursements Grow
The lender reported higher net interest income and lower credit costs, while its finance chief expects disbursement momentum to strengthen in the second half.
Key takeaways
- Net profit increased 34% year on year to Rs 780 crore in the second quarter.
- Net interest margin rose from a year earlier but narrowed from the June quarter.
- The CFO expects disbursement momentum to strengthen in the second half.
HDB Financial Services posted a 34% year-on-year increase in net profit to Rs 780 crore in the second quarter of FY27. Higher net interest income, loan growth and lower credit costs supported the result.
Net interest income rose 15.6% to Rs 2,534 crore, while total net income increased 14% to Rs 2,891 crore. Credit costs fell 2.5% year on year to Rs 730 crore.
Net interest margin, the difference between interest earned and paid relative to assets, was 8.23%. That was above 7.95% a year earlier but below 8.35% in the June quarter.
The gross loan book grew 12% year on year to Rs 1.24 lakh crore at the end of September. Disbursements rose 19% to Rs 18,522 crore, and the customer base expanded 18.4% to 24.8 million.
Chief Financial Officer Jaykumar Shah told analysts that disbursement momentum was expected to strengthen in the second half. He said loan against property, gold loans and unsecured business loans were expected to drive growth. Managing Director and CEO Ramesh Ganesan said the festive season was expected to boost consumer finance.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
