HDFC Bank’s Q3 results have shown a 2.2% year-over-year increase in net profit, reaching Rs 16,736 crore, surpassing initial estimates.
HDFC Bank, India’s largest private sector lender, recently released its financial results for the third quarter of FY25, revealing a 2.2 percent year-on-year increase in standalone net profit to Rs 16,736 crore. This exceeded analysts’ expectations, who had predicted a net profit of Rs 16,650 crore, according to a Moneycontrol poll.
The bank’s net interest income (NII), a crucial measure of its earnings, grew by 8 percent year-on-year to Rs 30,690 crore during the quarter, meeting expectations. The Net Interest Margin (NIM) for the quarter remained steady at 3.4 percent.
Despite facing challenges with rising NPAs and NPA ratios, HDFC Bank demonstrated consistent growth in its core earnings, including NII and net profit.
The stock market responded positively to the results, with HDFC Bank’s share price bouncing back from intraday lows to rise significantly, boosting benchmark indices. Following the Q3 results, HDFC Bank’s stock was trading up 1.3 percent at Rs 1,664 on NSE.
During the quarter, HDFC Bank experienced some pressure on asset quality, with Gross non-performing assets (GNPA) increasing to Rs 36,019 crore as of December 31, 2024, up 16 percent from the previous year. 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) surged by 51 percent to Rs 11,588 crore, with the NNPA ratio increasing by 15 basis points to 0.46 percent year-on-year.
Provisions for the quarter decreased to Rs 3,154 crore from Rs 4,217 crore in the same period last year, reflecting a 25 percent reduction year-on-year.
Total deposits reached Rs 25.6 lakh crore as of December
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