BENGALURU (Reuters) -Indian non-bank lender HDB Financial Services posted a near 2% drop in quarterly profit on Wednesday, hurt by rising bad loans and funds kept aside to meet potential losses.
The results were HDB’s second quarterly update since its trading debut in July. The firm, which lends in segments such as personal and business loans, operates 1,749 branches across India.
The country’s largest private lender, HDFC Bank, holds a 74.4% stake in HDB, according to LSEG data.
Indian lenders have been contending with elevated stress in unsecured categories, following a period of aggressive lending.
HDB’s assets under management and revenue from operations both rose 12.8% to 1.12 trillion rupees ($12.72 billion) and 45.45 billion rupees, respectively.
However, loans overdue for more than 90 days rose to 2.81% of total loans at end-September from 2.1% a year earlier. These loans add stress on the loan book.
Loan losses and provisions jumped 74% to 7.48 billion rupees. As a result, HDB’s net profit fell to 5.81 billion rupees.
($1 = 88.0260 Indian rupees)
(Reporting by Nishit Navin and Urvi Dugar; Editing by Mrigank Dhaniwala)
