HDFCBANK

MUMBAI, Jan 17 (Reuters) - Indian private lender HDFC Bank HDBK.NS reported a higher-than-expected profit for the third quarter on Saturday as loan growth remained strong and margins improved sequentially.

The country's largest private lender by market capitalisation posted a standalone net profit of 186.53 billion Indian rupees ($2.06 billion) for the three months ended December 31, an 11.5% increase from 167.35 billion rupees a year earlier. Analysts had expected a profit of 183.7 billion rupees, according to data compiled by LSEG.

The Mumbai-based lender's net interest income rose 6.4% to 326.2 billion rupees, while its net interest margin improved to 3.35% from 3.27% in the previous quarter.

The Reserve Bank of India cut its benchmark interest rate by a cumulative 125 basis points since February 2025 to spur consumption and investment. Banks are seeing a pick-up in margins, which had been squeezed earlier in the year as loans repriced faster than deposits.

HDFC Bank, which has been shoring up its deposit base after a merger with its parent HDFC two years ago, said deposits grew 11.6% in the quarter from a year earlier.

Loans grew 12%, driven by a pick-up in large corporate and small business loans.

The Mumbai-based lender's asset quality was stable with a gross non-performing asset ratio of 1.24% at the end of December, the same as three months earlier.

Funds set aside for potential bad loans and other losses fell 10% from a year earlier to 28 billion rupees.

($1 = 90.6820 Indian rupees)

(Reporting by Ashwin Manikandan and Ira Dugal in Mumbai; Editing by Ronojoy Mazumdar, Kirsten Donovan)

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Jan 15 (Reuters) - India's HDFC Life Insurance HDFL.NS reported a marginal rise in third-quarter profit on Thursday, as a higher premium collection driven by tax cuts more than made up for an increase in expenses.

The insurer's net profit rose 1.4% to 4.21 billion rupees ($46.62 million) for the three months ended December 31, up from 4.15 billion rupees a year earlier.

Demand for insurance products grew in the third quarter, supported by the government's move to slash goods and services tax (GST) on life insurance products to zero from 18%.

HDFC Life's net premium income grew 8.8% to 182.42 billion rupees. However, its management expenses rose 30% to 45.33 billion rupees driven by higher employee-related costs and operating expenses.

Annualised premium equivalent sales from individual policies, a key metric that calculates the annualised total value of single and recurring premium policies, rose nearly 13% to 35.17 billion rupees during the quarter, according to Reuters' calculation.

The number of policies sold recorded double-digit growth during the quarter, HDFC Life said.

"We expect this momentum to sustain into Q4, supporting a balanced and healthy full-year outcome," Chief Executive and Managing Director Vibha Padalkar said in a statement.

However, the government's move to do away with GST for insurance products also hurt insurers' margins as they could no longer claim the input tax credit.

HDFC Life's value of new business (VNB), or expected profit from new policies, increased 2.7% to 9.55 billion rupees for the reported quarter, per Reuters' calculation.

Without the GST cut and a regulation change regarding surrender charges, VNB growth for the quarter would have been 11%, the company said.

Its margins from new business for the nine months ended December 31 contracted to 24.4% from 25.1% a year earlier.

($1 = 90.2960 Indian rupees)

(Reporting by Hritam Mukherjee and Nishit Navin in Bengaluru)

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Jan 14 (Reuters) - India's HDB Financial Services HDBF.NS posted a near 36% rise in third-quarter profit on Wednesday, aided by improved loan growth.

Net profit rose to 6.44 billion rupees ($71.3 million) for the quarter ended December 31 from 4.72 billion rupees a year earlier.

($1 = 90.3580 Indian rupees)

(Reporting by Nishit Navin; Editing by Ronojoy Mazumdar)

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By Nishit Navin and Bharath Rajeswaran

Jan 12 (Reuters) - Indian banks are expected to post better annual and sequential earnings in the December quarter, supported by improving loan growth and stable asset quality, though pressure on deposit growth is likely to cap upside, brokerages said.

Analysts expect private sector banks to post average profit after tax growth of about 3.5%–5% year-on-year for October-December, higher than the 2% rise in the year-ago period. State-owned lenders are seen registering a more modest 2.5%–3% rise.

Credit momentum, the pace of loan growth, has strengthened in recent months on festive-season spending and Goods and Services Tax (GST) cuts, signalling a rebound in credit appetite in the world's fastest-growing major economy. Major lenders posted double-digit loan growth in the December quarter.

Net interest income (NII) is expected to improve sequentially as loan growth picks up.

"NII is likely to see a sequential uptick in the December quarter, driven by better loan growth," said Vishal Narnolia, assistant vice-president, research, at ICICI Securities.

Motilal Oswal estimates NII growth of around 6% year-on-year and 4% quarter-on-quarter in the third quarter.

Net interest margins (NIMs) are expected to remain flat, as the benefits of lower term deposit rates and recent cash reserve ratio (CRR) cuts offset the lagged impact of cumulative rate cuts.

The Reserve Bank of India has cut the repo rate by 125 basis points since February 2025. Asset quality is expected to remain stable, with easing stress in unsecured retail and microfinance portfolios, while provisions are expected to fall sequentially.

Among non-bank lenders, a recovery in demand across select segments and stable asset quality should underpin performance in the December quarter.

Gold financiers, such as Manappuram Finance MNFL.NS and Muthoot Finance MUTT.NS, are expected to post about 39% growth in assets under management on strong gold loan demand, while vehicle financiers should benefit from improved disbursement momentum amid pent-up demand, tax cuts and festive tailwinds.

By contrast, housing finance companies may report weaker disbursements due to intense competition from banks.

Outside lending, exchanges and brokers are expected to post robust revenue growth on a recovery in derivatives volumes and a rise in commodity trading activity.

Life insurers are also seen reporting strong earnings, supported by tax cuts that boost protection demand, and lower interest rates.

Looking ahead, Narnolia said the March quarter should benefit from deposit repricing and a pickup in unsecured retail segments such as microfinance and credit cards, though lending yields will remain under pressure after the RBI's latest rate cut.

(Reporting by Nishit Navin and Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)

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** HDFC Bank HDBK.NS drops 1.4% to 933.3 rupees, shedding 6.2% so far this week; among biggest pct losers on Nifty bank .NSEBANK index

** Stock marks biggest weekly drop since mid January 2024

** Weekly drop due to concerns over slow deposit growth after co's quarterly update

** Over 31.7 mln shares traded, 1.7x the 30-day avg

** Stock rated "buy" on avg; median PT is 1,170 rupees, per data compiled by LSEG

** In 2025, HDBK gained 12% vs NSEBANK's ~17% climb

(Reporting by Aleef Jahan in Bengaluru)

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Jan 7 (Reuters) -

** India's Nifty 50 .NSEI and Sensex .BSESN drop 0.3% each, set for third straight session of losses

** Benchmarks consolidating near record high levels as investors track quarterly business updates from companies and geopolitical tensions, per analysts

** Eleven of the 16 major sectors trade lower; mid-caps .NIFMDCP100 and small-caps .NIFSMCP100 up 0.2% and 0.1%, respectively

** Heavyweight HDFC Bank HDBK.NS down 1.4%, biggest drag on benchmarks; falls for third session on concerns over slow deposit growth

** Jewellers' shares jump 2%-12% after strong sales update for December quarter; Titan TITN.NS hits record high

** IT stocks .NIFTYIT jump 1.5%, among top sectoral gainers

(Reporting by Vivek Kumar M)

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Updates for markets close

By Bharath Rajeswaran and Vivek Kumar M

Jan 6 (Reuters) - Indian equity benchmarks slipped from near record highs on Tuesday, weighed down by heavyweight stocks Reliance Industries and HDFC Bank, while quarterly business updates drove stock-specific moves.

The Nifty 50 .NSEI fell 0.27% to 26,178.7 and the Sensex .BSESN lost 0.44% to 85,063.34. The indexes are down 0.6% and 0.8% in two sessions.

Ten of the 16 major sectors gained. Small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 dropped 0.2% each.

Reliance Industries RELI.NS, the second-heaviest stock on the benchmarks, slid 4.5%, its steepest one-day percentage fall since June 4, 2024, when India's general election results were announced.

The decline followed Reliance's statement that it does not expect Russian crude deliveries in January after U.S. President Donald Trump warned Washington could raise tariffs on India over its oil purchases.

A persistent negative rhetoric from Trump could have a detrimental effect on India's stock market at a time when it has been anticipating the capping of U.S. tariffs to 25% from the current 50% and the subsequent finalisation of a full trade deal, said Vinod Nair, head of research at Geojit Investments.

The concerns over rising competition in retail segment also weighed on Reliance's shares following Trent's TREN.NS weaker-than-expected sales growth for the December quarter.

The apparel retailer's shares slumped 8.6% on the day.

Meanwhile, CLSA removed Reliance from its India model portfolio.

India's largest private lender HDFC Bank HDBK.NS dropped 1.6%, adding to Monday's 2.4% drop, on concerns over slower deposit growth.

ICICI Bank ICBK.NS jumped 2.9% and led financials .NIFTYFIN 0.3% higher on optimism over improvement in credit growth and earnings for the sector in the December quarter.

JSW Steel JSTL.NS dropped 0.8%, while Tata Steel TISC.NS came off highs after Reuters reported that companies breached antitrust law.

Apollo Hospitals APLH.NS jumped 3.7% and topped the gainers list on Nifty after Citi raised price target for the stock on strong earnings visibility.

(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Nivedita Bhattacharjee)

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Updates

** HDFC Bank HDBK.NS drops 2.4% to 977.6 rupees after co's quarterly update

** Stock is the biggest percentage loser on benchmark Nifty 50 index, which is down 0.3%

** India's top private lender posted 11.9% y/y in loan growth as of December-end on Monday, while deposits increased 11.5%

** Its loan to deposit ratio (LDR), a metric that assesses whether it has enough deposits to fund loan growth, went up by 50 bps q/q to 98.5%, Suresh Ganapathy analyst at Macquarie said

** This in contrast to the bank's target to bring it below 90% by FY27

** HDBK has said it expects to grow loans in line with the industry in FY 2026, and faster than the industry in FY 2027

** "...They will have to operate at a 95%+ LDR if they have any aspirations of maintaining their loan growth above system," Ganapathy said

** HDBK rose 12.10% in 2025 vs a 10.5% rise in Nifty 50

($1 = 90.2400 Indian rupees)

(Reporting by Brijesh Patel and Nishit Navin in Bengaluru)

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By Aditya Kalra and Miho Uranaka

NEW DELHI/TOKYO, Dec 17 (Reuters) - Japan's Mitsubishi UFJ Financial Group (MUFG) 8306.T is set to invest more than $4 billion for a roughly 20% stake in Indian non-bank financial company Shriram Finance SHMF.NS, with the deal to be closed on Friday, two people with knowledge of the matter said.

MUFG declined to comment, while Shriram Finance did not respond to Reuters' queries.

It would be the latest in a string of overseas expansion deals by Japanese banks, which are looking for stronger growth than is available in a domestic market where the population is ageing and declining. India has become a popular destination due to its fast-growing economy.

Larger Japanese rival Sumitomo Mitsui Financial Group 8316.T bought 24.2% of Indian lender Yes Bank YESB.NS this year, starting with a 20% stake for $1.6 billion in May.

Japan's Mizuho Securities said on Wednesday it would buy a majority stake in Indian investment bank Avendus from U.S. investment firm KKR KKR.N for up to 81 billion yen ($523 million).

Bloomberg reported on Monday that MUFG may invest more than $3.2 billion in the Shriram Finance deal, but the two sources said the amount will be much higher.

While both said the amount will be in excess of $4 billion, one of the sources put the number at about $4.3 billion, or 390 billion Indian rupees. They declined to be named because the details are confidential.

Shriram Finance late on Tuesday told Indian stock exchanges that its board would meet on Friday to discuss and approve a proposal to raise funds, without elaborating.

Shriram Finance is one of India's biggest retail non-banking financial entities, offering credit solutions for commercial vehicles, cars, scooters and personal loans. Its assets under management stood at 2.8 trillion Indian rupees, or $31 billion, as of the end of September.

(Reporting by Aditya Kalra in New Delhi and Miho Uranaka in Tokyo; Additional reporting by Vibhuti Sharma and Gopika Gopakumar; Editing by Jamie Freed)

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Oct 30 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK - RE-APPOINTMENT OF MR. KAIZAD BHARUCHA AS DEPUTY MANAGING DIRECTOR

Source text: ID:nBSE1zZC54

Further company coverage: HDBK.NS

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• India's HDFC Bank expects Oct retail inflation to plunge to its lowest-ever level

• "As per our preliminary estimates, we are tracking the October CPI print in the range of 0.2%-0.5%," principal economist Sakshi Gupta says

• Says if food prices decline faster or if GST rate cut pass-through is higher than 50% on average, there is possibility that CPI may be zero or marginally negative

• CPI ex-gold for Oct already in negative zone

• Bank revised FY inflation forecast to 2%-2.2% from 2.5%, views Nov inflation to be below 1%

• Retail inflation in Sept at 1.54%, lowest level in eight years

• Current and forward-looking inflation trajectory raises chance of 25 bps Dec rate cut - HDFC

(Reporting by Dharamraj Dhutia)

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BENGALURU, Oct 15 (Reuters) - India's HDFC Life Insurance HDFL.NS reported a higher second-quarter profit on Wednesday, driven by strong demand for retail insurance products and a pickup in market-linked plans.

Net premium income for the quarter rose 13% to 187.77 billion rupees ($2.13 billion), supported by an 11% increase in one-time premiums, and a 17% growth in premiums from older policies which were renewed.

However, commission paid for sales jumped 25%, hitting the bottom line.

The insurer's net profit rose 3.3% year-on-year to 4.47 billion rupees for the quarter ended September 30.

Analysts said that robust retail demand for life insurance helped HDFC Life in July–September while demand for market-linked products also recovered.

Market-linked policies, which generate lower margins, made up 42% of HDFC Life’s product mix at September-end, up from 36% a year earlier, and 38% at the end of June.

The value of new business rose nearly 8% to 10.09 billion rupees, according to a Reuters' calculation. The margin on the new business value stood at 24.5%, down from 25% at June-end.

Annual premium equivalent sales — a key metric of new policy growth — rose 10% to 74.13 billion rupees for the half year.

Analysts have warned that the government's move to cut goods and services tax on life insurance products to 0% from 18% could weigh on insurers' profitability in the coming quarters.

While the tax cut improves affordability for customers and may aid volume growth, it eliminates insurers’ ability to claim input tax credit on services used to deliver these products.

Shares of HDFC Life ended 2.4% higher ahead of the results.

($1 = 88.0190 Indian rupees)

(Reporting by Nishit Navin; Editing by Eileen Soreng and Mrigank Dhaniwala)

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By Bharath Rajeswaran and Nishit Navin

BENGALURU, Oct 9 (Reuters) - Indian banks are poised to report subdued earnings for the September quarter, weighed down by tepid loan demand across retail and corporate segments and margin contraction due to rate cuts by the central bank, analysts said.

The Reserve Bank of India has lowered its interest rate by 100 basis points this year to revive consumption and investment amid a slowing economy. Rate cuts tend to squeeze banks' margins in the short term, as lenders reduce loan rates faster than they adjust deposit rates.

Analysts forecast private banks to post a year-on-year decline in profit in the September quarter, while net interest income (NII) may see only a marginal uptick.

Sector-wide profit is forecast to fall 7%-12% year-on-year in the quarter, with state-owned banks underperforming larger peers.

Jefferies estimates profits of large banks will fall 12% year-on-year, after posting an 8% growth in the year-ago quarter and a marginal 2% growth in the June quarter.

The brokerage forecasts 5% drop in profit for private lenders and a 20% decline for public sector banks. It expects loan growth at roughly 11% and a flat NII.

Axis Bank AXBK.NS will kick off the banking sector earnings on October 15, followed by Federal Bank FED.NS, ICICI Bank ICBK.NS, IDFC Bank IDFB.NS, IndusInd Bank INBK.NS later in the week.

"Asset quality trends are likely to remain stable due to controlled slippages and robust provision coverage ratios," said Nitin Aggarwal of Motilal Oswal.

Nomura added that stress in unsecured retail and microfinance portfolios remains elevated but delinquency trends are improving, although a gradual profit recovery is likely from the second half of fiscal 2026.

Loan growth is expected to remain muted at around 10% in the September quarter, with corporate and big-ticket retail demand still soft.

Rising bond yields are also likely to weigh on treasury income. "With bond yields rising, treasury gains will not cushion earnings in the September quarter," Axis Securities said.

Analysts expect a recovery from the second half of fiscal year 2026, driven by stronger consumption, government tax relief, and faster growth in unsecured credit.

"We expect the September quarter to mark a turning point, with earnings momentum improving from the December quarter onwards as margin pressure eases and asset quality trends strengthen," said Ankit Bihani, analyst at Nomura.

With the RBI keeping rates unchanged in recent meetings, banks' margins are expected to get some relief from the ongoing quarter as borrowing costs fall and deposit rates adjust.

Banks .NSEBANK, private lenders .NIFPVTBNK and state-owned banks .NIFTYPSU have gained 10.1%, 10.6% and 15% year-to-date, outperforming the Nifty 50's .NSEI 6% rise.

(Reporting by Nishit Navin and Bharath Rajeswaran; Editing by Eileen Soreng)

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-- Source link: https://tinyurl.com/2bu9kmyq

-- Note: Reuters has not verified this story and does not vouch for its accuracy

((Bengaluru newsroom, [email protected]))

** Shares of top private lender HDFC Bank HDBK.NS rise as much as 1.2% to 976.45 rupees, leading gains in Nifty .NSEI and Sensex .BSESN

** Nifty, Sensex up about 0.4% each

** Gross advances up 9.9% Y/Y in September quarter, while AUM jumps 8.9% - HDBK in pre-quarter business update

** HDBK's loan growth improved further to 10%, showing a reasonable improvement of 5% in 2 quarters, say Prakhar Sharma and Vinayak Agrawal, analysts at Jefferies

** Gross advances growth demonstrates significant momentum and exceeded expectations - Citi Research

** Stock rated "buy" on average by 38 analysts; median PT is 1,145 rupees - data compiled by LSEG

** YTD, HDBK up 9.2% vs 5.7% rise in Nifty

(Reporting by Bharath Rajeswaran in Bengaluru)

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Oct 1 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK LTD - RAHUL SHYAM SHUKLA RESIGNS AS SENIOR MANAGEMENT PERSONNEL

Source text: ID:nNSE74ygT6

Further company coverage: HDBK.NS

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Sept 29 (Reuters Breakingviews) - India's financial technology startups are lining up for credit. Among them is Walmart-backed WMT.N payments champion PhonePe, which on Wednesday said it has confidentially filed for an initial public offering in Mumbai. A mooted $15 billion valuationlooks punchy, but its shot at grabbing the ultimate fintech prize in the country is half decent.

The U.S. retailer owns about 84% of the startup, which it acquired as part of its 2018 acquisition of e-commerce platform Flipkart. PhonePe's target valuation would imply a multiple of 13 times sales for the year to end March 2026, assuming its topline grows at the same 40% pace as it did in the previous year. That compares to 9 times Paytm-owner One97 Communications PAYT.NS commands among investors.

PhonePe is superior in multiple ways. Though Paytm swung to profit in the June quarter, PhonePe's losses are narrowing and it has faced none of the regulatory heat that has mired its rival. The Walmart unit also enjoys a 46% share in transactions passing through India's homegrown bank-to-bank mobile payments system, where its closest competitor is an application owned by Alphabet's GOOGL.O Google.

Yet simple payment transactions earn no fees in India. To profit, PhonePe needs to gradually convert its 200 million monthly active users and 40 million-strong merchant network into customers of financial products, from loans to insurance and mutual funds.

It's a promise that Paytm is starting to realise. Its revenue from financial services distribution doubled during the year to end June and accounted for 29% of its quarterly topline. PhonePe, by virtue of its bigger share of payments, ought to have a larger database spanning utility bill payments to restaurant outings that it can leverage to decide who is creditworthy.

The upstart will probably churn out a different, slightly lower, class of customer to those chased by India's traditional lenders, including HDFC Bank HDBK.NS and ICICI Bank ICBK.NS. They already have strong digital sourcing engines, however, so there will be some overlap in who they target. And the $72 billion Bajaj Finance BJFN.NS has a formidable grip on the consumer loan market too that's proven hard to break.

Yet if India is to produce anything like a real fintech winner, PhonePe is more than likely to be it.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Walmart-backed Indian fintech firm PhonePe on September 24 said it has confidentially filed for a Mumbai initial public offering.

The company plans to raise around 120 billion rupees ($1.35 billion) through a sale of existing shares, Moneycontrol reported on the same day, citing unnamed industry sources. Walmart, Tiger Global and Microsoft could sell a combined 10% stake in the IPO, the report added.

PhonePe narrowed losses during the year ended March 31 to 17.3 billion rupees ($194.7 million) from 19.96 billion rupees ($225 million) in the previous 12-month period, the company said in a regulatory filing on September 22.

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

NEW DELHI, Sept 27 (Reuters) - HDFC Bank HDBK.NS said that its Dubai International Financial Centre (DIFC) branch has been ordered to stop onboarding or soliciting new clients by a United Arab Emirates regulator.

Dubai Financial Services Authority's order has been in effect from September 26 and will remain "until otherwise amended or revoked," the bank said late on Friday.

"The bank has already initiated necessary steps to comply with the directives in the above-referred notice and is committed to work with the DFSA to promptly remediate and address the DFSA concerns at the earliest," HDFC said in a statement.

As on September 23, the its DIFC Branch has

1,489 customers, including joint holders, it said.

The bank said the order does not have any "material impact" with respect to the overall operations or financial position of the bank.

HDFC Bank said the prohibition does not apply to

the continued servicing of existing customers of the DIFC Branch.

(Reporting by Aftab Ahmed; Editing by Kim Coghill)

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MUMBAI, Sept 23 (Reuters) - India's HDB Financial Services plans to raise up to 5 billion rupees ($56.45 million), including a greenshoe option of 4 billion rupees, through the reissue of its 7.3274% August 2028 bond, three bankers said on Tuesday.

It will offer a yield of 7.3150%, and has invited commitment bids for the issue on Wednesday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on September 23:

*Size includes base plus greenshoe for some issues

($1 = 88.5770 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia)

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MUMBAI, Sept 11 (Reuters) - India's HDB Financial Services HDBF.NS plans to raise 5 billion rupees ($56.7 million) through the sale of bonds maturing in two years and 11 months, three bankers said on Thursday.

It has invited coupon and commitment bids for the issue later in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on September 11:

*Size includes base plus greenshoe for some issues

($1 = 88.1200 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sumana Nandy)

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