Along with the results, the board approved a fundraising plan of Rs 32,825 crore through debt. This includes refinancing of Rs 31,975 crore and fresh borrowing of Rs 850 crore, to be raised via issuance of debt securities in one or more tranches.
The company also announced a final dividend of Rs 2 per share for the financial year ended March 2026.
Net interest income for the quarter stood at Rs 2,399 crore, up 22% YoY. Operating performance remained robust, with pre-provision operating profit rising 27% to Rs 1,696 crore from Rs 1,338 crore. As a result, profit before tax jumped 44% to Rs 1,011 crore, compared with Rs 704 crore a year ago.
Provisions and loan losses rose to Rs 685 crore from Rs 634 crore, but overall profitability remained firm, supported by higher income and improved operating leverage.
For the full financial year FY26, net profit grew 17% to Rs 2,544 crore from Rs 2,176 crore in FY25. On the balance sheet side, assets under management stood at Rs 1.18 lakh crore as of March 2026, reflecting an 11% increase. The gross loan book also expanded 11% to Rs 1.18 lakh crore.
The loan mix remained largely unchanged, with enterprise lending and asset finance each contributing 38%, while consumer finance accounted for 24%. Secured loans continued to form a significant portion at 74% of the total portfolio, indicating a cautious risk approach.Margins improved during the quarter, with net interest margin rising to 8.2% from 7.6% a year earlier and 8.1% in the previous quarter. Return on average assets improved to 2.5% on an annualised basis, compared with 2% in the year-ago period.
Asset quality, however, weakened slightly YoY. Gross Stage 3 assets stood at 2.44% vs 2.26% last year, though they improved sequentially from 2.81% in the December quarter. Net Stage 3 assets increased to 1.09% from 0.99% a year ago, while the provision coverage ratio remained broadly steady at 55.53%.
Credit cost as a percentage of total gross loans eased to 2.3% from 2.4% a year earlier, indicating some moderation in stress levels despite still-elevated delinquencies.
HDB Financial Services shares are down 12% over the past six months and about 15% year-to-date.
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