HDFC Bank, India’s largest private sector lender, announced its financial results for the third quarter of fiscal year 2025 (Q3 FY25) on January 22, 2025.
Key Financial Highlights:
- Net Profit: The bank reported a standalone net profit of ₹16,735.50 crore, marking a 2.2% year-on-year (YoY) increase from ₹16,372.54 crore in the same quarter of the previous year.
- Total Income: Total standalone income rose to ₹87,460.44 crore, up 7% YoY compared to ₹81,719.65 crore in Q3 FY24.
- Net Interest Income (NII): NII increased by 7.7% YoY to ₹30,650 crore, up from ₹28,470 crore in the corresponding quarter of the previous year.
- Non-Interest Income: The bank reported non-interest income of ₹11,450 crore, a 2.8% YoY growth.
Asset Quality and Provisions:
- Gross Non-Performing Assets (GNPA): The GNPA ratio increased to 1.42% from 1.36% in the previous quarter, primarily due to stress in agricultural loans.
- Provisions: Provisions for bad loans and contingencies rose by 17% sequentially to ₹3,154 crore, reflecting a cautious approach to potential loan defaults.
Deposits and Advances:
- Deposits: Total deposits grew by 4.2% quarter-on-quarter (QoQ) to ₹24.53 trillion.
- Gross Advances: Gross advances increased by 0.9% QoQ to ₹25.43 trillion.
The bank’s management highlighted the need to accelerate deposit mobilization to support loan growth, especially following the merger with its parent company, HDFC Ltd., in July 2023. This merger led to an increased loan-to-deposit ratio, necessitating a focus on enhancing deposit growth or moderating loan expansion.
Despite challenges in asset quality due to agricultural loan stress, HDFC Bank’s financial performance remains stable, with modest growth in net profit and income. The bank continues to focus on strengthening its balance sheet and managing asset quality in the evolving economic environment.
