HDB Financial Services Q1 net profit nosedives on Covid-19 impact

Asset quality takes hit with NPAs surging to 7.75%

HDB Financial Services Ltd (HDBFSL’s), subsidiary of HDFC Bank, posted a sharp drop (43.9 per cent) in net profit at Rs 130.6 crore in the first quarter ended June 2021 (Q1FY22) from Rs 232.7 crore a year ago. The second wave of Covid-19 hit the business volumes and collections in Q1FY22.

HDBFSL’s net income in the reporting quarter was almost flat at Rs 1,655.8 crore as against Rs 1,609.7 crore for the quarter ended June 30, 2020 (Q1FY21). HDFC Bank holds 95.1 per cent stake in non-banking finance company.

The Provisions and contingencies for the reporting quarter rose to Rs