MUMBAI: HDB Financial Services reported net profit of Rs 785.2 crore for the June 2026 quarter, up 38.3% from Rs 567.7 crore in the year-ago period, driven by steady growth in net interest income and a moderate rise in non-interest income alongside stable credit costs.Net interest income rose to about Rs 2,508.7 crore from Rs 2,091.8 crore a year earlier, marking a growth of nearly 20%. Interest income increased 11.2% year-on-year to Rs 4,262 crore, reflecting expansion in the loan book, while finance costs were largely stable at Rs 1,753.3 crore compared with Rs 1,739.7 crore, indicating relatively contained funding costs and stable spreads.Non-interest income showed modest growth, rising 6.6% to Rs 675.9 crore from Rs 633.9 crore. This was supported by higher fee-based income, with sale of services at Rs 312.9 crore and other financial charges at Rs 351.3 crore.Treasury gains were lower, with fair value gains at Rs 11.7 crore compared with Rs 24.9 crore a year ago, partly offsetting the overall increase in non-interest income.Total income translated into a pre-tax profit of Rs 1,055.1 crore, up from Rs 732.5 crore.Operating expenses increased in line with business growth, with employee costs rising to Rs 1,035.4 crore from Rs 960.1 crore and other expenses to Rs 342.2 crore from Rs 312 crore, reflecting continued investment in distribution and operations.Credit costs remained elevated but stable, with impairment of financial instruments at Rs 697.1 crore compared with Rs 669.7 crore a year ago, indicating steady provisioning levels and no sharp deterioration in asset quality.After accounting for tax expenses of Rs 269.9 crore, net profit stood at Rs 785.2 crore.