HDB Financial Services reports weak Q1 earnings

HDB Financial Services Q1 (YoY) :

Profit dropped 2.4% to Rs 568 crore Vs. Rs 582 crore.

Net interest income grows 18.3% to Rs. 2,092 crore Vs Rs 1,768 crore.

Net interest margin expands to 7.7% Vs 7.6%.

Gross loans increases 14.3% to Rs 1.09 lakh crore Vs Rs 95,629 crore.

Pre-provisioning operating profit zooms 17.2% to Rs 1,402 crore Vs Rs 1,196 crore.

Gross NPA jumps to 2.56% Vs 2.26%. Net NPA climbs to 1.11% Vs 0.77%.

View – higher credit cost due to deterioration of asset quality hence drop in profitability, Weak Results