HDB Financial Services Management Guidance Tracker
12 forward-looking guidance items tracked across 3 quarters.
Margins
Management expects credit cost to normalize from Q3 onwards towards the 2.2% medium-term target, down from current 2.7%.
Q2 FY26NIM sweet spot of 7.9-8%ActiveManagement aims to maintain NIM in the 7.9-8% range, balancing yield and cost of funds pressures.
Q2 FY26Cost-to-assets target of 3.6-3.7%ActiveManagement targets cost-to-assets ratio between 3.6% and 3.7% as it continues to invest and grow.
Q3 FY26NIM to remain rangebound around 8%ActiveNet interest margin expected to stay in 7.9-8.1% range for the next few quarters, with potential 5-10 bps variation.
Q3 FY26Credit cost reduction target of 10-20 bpsTrackedManagement aims to reduce credit cost by 10-20 bps from current ~2.5% over the medium term, driven by improving asset quality.
Q3 FY26Cost-to-income ratio below 40%ActiveCost-to-income ratio for lending business reduced to 39.5% in Q3; management expects to sustain below 40% as book grows.
Q4 FY26Credit cost to moderate around 2.3%ActiveCredit cost is expected to remain in the range of 2.3% plus/minus for the medium term, down from 2.35% in Q4.
Q4 FY26NIM to sustain above 8%ActiveManagement aims to maintain NIM above 8% on a sustainable basis, with current NIM at 8.23% and a non-negotiable 8%+ target.
Growth
Over a 3-5 year horizon, HDB targets 18-20% CAGR in loan book growth, with potential to adjust higher if GDP growth supports.
Q3 FY26Book growth target of 18-20%TrackedManagement expects loan book growth to return to 18-20% range (nominal GDP +6-7%) as unsecured portfolio stabilizes and growth resumes in coming quarters.
Q4 FY26Medium-term AUM growth of nominal GDP +6-7%TrackedManagement targets AUM growth at nominal GDP plus 6-7% over the medium term, with disbursement momentum as the leading indicator.