More Stories

Informist, Thursday, Jul. 16, 2026

 

MUMBAI – HDB Financial Services Ltd. expects its credit cost to stabilise through the September quarter, the company's management told analysts during a post-earnings conference call Wednesday.

 

"...Q1 (June quarter) has been weaker and almost in line with expectations. We expect things to move in the right direction from here on and stabilise through Q2 (September quarter) and then improve going forward," Chief Financial Officer Jaykumar Shah said, according to the transcript of the call made available on the company's website. HDB Financial's credit cost rose over 4% on year and nearly 2% on quarter to INR 6.97 billion in the June quarter. 

 

Unsecured business loans and commercial vehicles are the two product categories that have seen an elevation in credit cost, the management said. "The consumer finance categories...both from a growth and quality perspective is doing quite well," Managing Director and Chief Executive Officer G. Ramesh said.

 

The non-banking financier's net interest margin for the June quarter rose 12 basis points from the trailing quarter to 8.35%. The company's focus on aligning its segment-wise strategy in asset finance has also contributed to the expansion in the net interest margin on the yield side, the management said.

 

"...our NIM (net interest margin) has expanded because our yields have improved, not because of benefit of cost of funds, which will start coming from Q2 onwards," Ramesh said. The benefit of the reduction in deposit rates following the repo rate cut is expected to come through the September quarter onwards, the management said.

 

The company is not considering closure of any business at this point of time. "We're broadly comfortable with the product mix that we have and working towards making sure that we are not dependent on any one product or any one category to an extent that it impacts our balance sheet," Ramesh said.

 

HDB Financial announced its June quarter results on Wednesday, reporting a net profit of INR 7.85 billion, up over 38% on year. Its revenue rose nearly 11% on year to INR 49.38 billion. At 1400 IST, shares of the lender traded marginally higher at INR 754 apiece on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Nandini Sinha

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.