India’s largest private sector lender HDFC Bank reported its financial results for the third quarter of FY25, posting a 2.2 percent year-on-year rise in standalone net profit to Rs 16,736 crore. The earnings surpassed Street expectations, with analysts projecting a net profit of Rs 16,650 crore, according to a Moneycontrol poll.
The bank's net interest income (NII), a key metric of the bank's earnings, grew 8 percent YoY to Rs 30,690 crore during the quarter, in line with expectations. Net Interest Margin (NIM) for the quarter was flat at 3.4 percent.
This steady growth in HDFC Bank's core earnings - both NII and net profit - came in despite a rise in NPAs and NPA ratios.
The share market responded positively despite NPA concerns, with HDFC Bank share price rebounding from intraday lows to jump firmly into green, lifting benchmark indices. Soon after the Q3 results, HDFC Bank stock was trading up 1.3 percent at Rs 1,664 on NSE.
Also read | MC Market Poll: Majority of experts believe markets could fall another 10 percent before bottoming out
HDFC Bank faced some pressure on asset quality during the quarter. Gross non-performing assets (GNPA) increased to Rs 36,019 crore as of December 31, 2024, up 16 percent from Rs 31,012 crore a year ago. Consequently, the GNPA ratio expanded by 18 basis points to 1.42 percent from 1.26 percent in the same period last year.
Similarly, net non-performing assets (NNPA) jumped 51 percent to Rs 11,588 crore, with the NNPA ratio increasing by 15 basis points to 0.46 percent from 0.31 percent YoY.
Provisions for the quarter declined to Rs 3,154 crore from Rs 4,217 crore in the same period last year, reflecting a YoY reduction of 25 percent.
Total deposits stood at Rs 25.6 lakh crore as of December 31, 2024, registering a 15.8 percent YoY growth, while total advances rose 3 percent to Rs 25.2 lakh crore during the same period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
