HDB Financial Services

“But at least from a current standpoint, I think going into Q3, there will be a minor impact. We don't expect anything major in terms of an impact on our NIM.”

“I think fundamentally, NIM is something which we will work heavily towards holding it in a very, very narrow range from where we are today, at least for the near term, over the next couple of quarters.”

“Q3 is generally better for us as compared to Q2, and Q4 is better than Q3. So, I genuinely expect that trajectory to start moving in the right direction, upwards from here on, is what I would put out.”

“I am very hopeful that Q4 starts to show that strength in the diversified franchise that we have.”

“So, it is not that we have got to find the people, we've got to find the systems, or we have got to find the network. All of that is in place.”

“Enterprise Lending: which is a business consisting of Unsecured Loans, Loan against Property, and Gold Loans – Q2 disbursements for the segment grew by 25.5% YoY.”

“Our Unsecured Business Loans business returned to sequential growth trajectory this quarter. We expect momentum to continue in unsecured business loans going forward as well.”

“On Asset Finance: Our Commercial Vehicle book registered a moderate growth of 8% YoY, while our Construction Equipment book grew by 12% in the same period.”

“Disbursements for Consumer Finance vertical grew over 25% YoY, while the book expanded 22% YoY.”

“Consumer Durables book, which consists of loans for purchase of consumer durables and digital products, that book grew by 49% YoY, and the Auto Loan book grew by 22% YoY.”

“Real GDP growth projections have been revised to 7.1% for FY27, as highlighted by RBI in its Monetary Policy.”

“While sentiments around global uncertainty and deficient monsoon have had some impact, the outlook for H2 is positive with the upcoming festive season and continuing momentum in domestic economic activity.”

“Festive season demand led by increasing last-mile volume, post-monsoon pickup in construction activity, and stable fleet utilization levels augur well for Asset Finance business as we enter H2 with confidence.”

“Portfolio quality and collections were stable for the Consumer Finance vertical. So, the festive season is expected to be a big fillip for this business.”

“Conversations with our channel and OEM partners indicate strong confidence on the back of festive demand, and we look forward to a strong H2.”

“Net interest margin for Q2FY27 was at 8.23% versus 7.95% in Q2FY26 and 8.35% for Q1FY27.”

“Cost-to-income ratio for our lending business was 39.3% in Q2 FY27 as compared to 40.7% in Q2FY26 and 39.9% in Q1FY27.”

“One is we do have a LAP book, which is on the floating side. So, when rates increase and rates come through, we have the ability to pass on.”

“On productivity, you are right, our cost-to-income has declined from about 40.7% to 39.3%. We have also had a much significant improvement in our Opex ratio, compared to last quarter, it's down about 10 bps.”

“All I can tell you is that we are making sure, as we make investments in AI, we won't let cost balloon where it hurts us, because we are making sure that also helps us on the productivity front.”

“Our borrowing mix remains well diversified and a positive cumulative mismatch across all buckets up to five years.”

“We remain well capitalized with the total capital adequacy of 21.37% as at September 30, 2026.”

“So, NCDs today go in at around 8.25%, 8.2%. That said, availability of various other instruments also helps us balance it. With our current borrowing cost of 7.04%, we'll see how much in a small range does it move around.”

“So, we hardly have anything on MCLR. We have around 55%-60% on repo.”

“The Board of Directors have declared an interim dividend of ₹2 per equity share with a record date of October 23, 2026.”

“On the Monetary Policy front, there has been a change in stance to calibrated tightening and increase in repo rate by 25 basis points on October 7, 2026.”

“However, the impact of uneven spatial distribution of monsoon on food production and inflation remains a key monitorable.”

“We did notice some seasonality effect in our asset quality in asset finance in line with expectations. We expect this to normalize in the coming months.”

“Gross Stage 3, which is the same as GNPA for us, as at September 30, 2026, stood at 2.43% as against 2.81% as at September 30, 2025, and 2.34% as at June 30, 2026, while the PCR was at 55%.”

“Credit cost for the quarter was 2.37% as against 2.32% for the prior quarter.”

“Overall, in Q2, our disbursements continued on growth trajectory, growing by 18% YoY. Our profit after tax grew 34% YoY.”

“So, we began a project on AI-led customer onboarding, which basically reduces the time it takes to onboard a customer. That has started for our consumer finance business, and we expect benefits to build as we build and roll out that project to the larger ecosystem.”

“Over 1 in 5 calls of tele-calling that we make on early buckets is now through an AI-powered bot.”

“Customer franchise grew to 24.8 million, with an increase of 18.4% YoY”

“Disbursements for the quarter ended September 30, 2026, was ₹18,522 crores, up 18.7% YoY.”