HDB Financial Services Ltd.PAT +34%, NIM 8.23%, GNPA 2.43%

HDB Financial Services reported Q2 FY27 profit after tax of ₹780 crore, up 34% year-on-year.

Disbursements were ₹18,522 crore, up 18.7%, and the gross loan book was ₹1,24,469 crore, up 11.7% year-on-year and 2.2% sequentially, with secured loans at 73.9%. Net interest income was ₹2,534 crore, up 15.6%, and net interest margin was 8.23%, against 8.35% in Q1 and 7.95% a year earlier. Gross Stage 3 assets improved to 2.43% from 2.81% a year ago, though it rose from 2.34% in June, with provision coverage at 55%.

Credit cost was 2.37% and return on assets 2.42%. Cost to income improved to 39.3%. Enterprise lending disbursements grew 25.5% with gold loans up over 60%, consumer finance disbursements grew over 25%, and asset finance remained weak, particularly used vehicles. Capital adequacy was 21.37% and an interim dividend of ₹2 per share was declared. Management expects net interest margin to stay in a narrow range after the 25 basis point repo hike, expects disbursement growth to improve through Q4, and said regulatory changes to insurance commissions could affect about ₹455 crore of fee income, around 0.3% of assets.