BENGALURU (Reuters) -India’s HDB Financial Services, a unit of lender HDFC Bank, posted a lower first-quarter profit on Tuesday, hurt by higher provisions for bad loans.
In its first quarterly earnings since debuting earlier this month, the non-bank lender reported a consolidated profit after tax of 5.68 billion rupees ($66.2 million), down from 5.82 billion rupees a year earlier.
Indian lenders have grappled with higher bad loans in recent quarters after a period of aggressive lending, especially in unsecured segments. HDB Financial also reported a drop in the March-quarter profit due to higher bad loans.
Loan losses and provisions for the three months ended June 30 jumped 63% year-on-year to 6.70 billion rupees.
Gross stage three assets, or loans which have been overdue for more than 90 days, rose to 2.56% as of June end, from 1.93% a year earlier.
Total revenue from operations rose 15% to 44.65 billion rupees, while total loans grew 14.3% to 1.09 trillion rupees.
($1 = 85.8140 Indian rupees)
(Reporting by Nishit Navin and Kashish Tandon; Editing by Mrigank Dhaniwala and Vijay Kishore)
