HDFC Bank Q3 Results: Net Profit Up 2.2% YoY at ₹16,736 Crore, Beats Estimates
Q3 Net Profit
India's largest private sector lender, HDFC Bank, reported its financial results for the third quarter of FY25, posting a 2.2% year-on-year rise in standalone net profit, reaching ₹16,736 crore. The earnings surpassed Street expectations, with analysts projecting a net profit of ₹16,650 crore, according to a poll.
Net Interest Income (NII)
The bank's net interest income (NII), a key metric of the bank's earnings, grew by 8% YoY to ₹30,690 crore during the quarter, which was in line with expectations. The Net Interest Margin (NIM) for the quarter was flat at 3.4%.
Asset Quality
This steady growth in HDFC Bank's core earnings, both NII and net profit, came despite a rise in Non-Performing Assets (NPAs) and NPA ratios. The share market responded positively despite these concerns, with HDFC Bank's share price rebounding from intraday lows to jump firmly into the green, which helped to lift benchmark indices. Soon after the Q3 results were announced, HDFC Bank stock was trading up 1.3% at ₹1,664 on NSE.
Increase in Gross and Net NPAs
HDFC Bank faced some pressure on asset quality during the quarter. Gross non-performing assets (GNPA) increased to ₹36,019 crore as of December 31, 2024, up 16% from ₹31,012 crore a year ago. Consequently, the GNPA ratio expanded by 18 basis points to 1.42% from 1.26% in the same period last year. Similarly, net non-performing assets (NNPA) jumped 51% to ₹11,588 crore, with the NNPA ratio increasing by 15 basis points to 0.46% from 0.31% YoY.
Provisions and Deposits
Provisions for the quarter declined to ₹3,154 crore from ₹4,217 crore in the same period last year, reflecting a YoY reduction of 25%. Total deposits stood at ₹25.6 lakh crore as of December 31, 2024, registering a 15.8% YoY growth, while total advances rose 3% to ₹25.2 lakh crore during the same period.
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