HDFC Bank Reports 2.2% Net Profit Growth in Q3 Amid Rising Gross NPA
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Synopsis
HDFC Bank has reported a net profit growth of 2.2% for the third quarter of the fiscal year, despite an increase in its gross non-performing assets (NPA) ratio. The bank's profit reached Rs 16,736 crore, with significant growth in net interest income and average deposits.
Key Takeaways
- HDFC Bank's net profit rose by 2.2% in Q3 FY25.
- Gross NPA ratio increased to 1.42%.
- Net interest income grew by 8% year-on-year.
- Operating expenses climbed 7.2% to Rs 17,110 crores.
- Average deposits surged by 15.9% in the same quarter.
Mumbai, Jan 22 (NationPress) HDFC Bank, recognized as India's leading private lender, announced a net profit growth of 2.2 percent for the third quarter of the fiscal year, even as its gross non-performing assets (NPA) ratio experienced a rise during this period.
For the quarter ending December, the bank reported a profit of Rs 16,736 crore, an increase from Rs 16,373 crore in the corresponding quarter of the previous year.
The net interest income, which serves as the bank's primary revenue source, surged by nearly 8 percent (year-on-year) to Rs 30,650 crore. The core net interest margin was recorded at 3.43 percent for HDFC Bank and 3.62 percent on an interest-earning asset basis.
In the preceding quarter of September, these figures were noted at 3.46 percent and 3.65 percent respectively.
Moreover, there was a rise in the interest earned, which climbed by 7.6 percent. The bank earned Rs 76,007 crore in Q3FY25, compared to Rs 70,583 crore in the same quarter the previous year.
Conversely, HDFC Bank disbursed Rs 45,354 crore in interest for the quarter, reflecting a 7.7 percent increase from Rs 42,111 crore in Q3 FY24.
However, the asset quality of the private sector bank saw a decline, with the gross NPA ratio escalating to 1.42 percent as of December, up from 1.36 percent in the prior quarter. The net NPA ratio similarly rose to 0.46 percent, compared to 0.41 percent in the previous quarter.
The report also indicated that the earnings per share for the quarter ending December 31, 2024, was Rs 23.1, with a book value per share of Rs 656.6 as of the same date.
Operating expenses for HDFC Bank totaled Rs 17,110 crores, marking a 7.2 percent increase from Rs 15,960 crores in the same quarter last year.
The cost-to-income ratio for the bank stood at 40.6 percent in Q3. Additionally, the average deposits saw a growth of 15.9 percent, reaching Rs 24,52,800 crore, up from Rs 21,17,100 crore in the previous year.
For Q3 FY25, the total balance sheet size amounted to Rs 37,59,000 crore, compared to Rs 34,92,600 crore as of December 31, 2023.
Although the profit after tax (PAT) was slightly below expectations, the bank's shares registered a gain of over 1 percent. During intra-day trading on Wednesday, shares peaked at Rs 1,659.90.
