HDFC Bank, India’s largest private sector lender, posted a 5.3 per cent year-on-year (YoY) increase in net profit for Q2FY25, reaching Rs 16,820 crore. This growth was fueled by strong Net Interest Income (NII) and lower provisions. Sequentially, net profit rose 4 per cent from Rs 16,175 crore in Q1FY25.
The bank’s NII for Q2FY25 stood at Rs 30,110 crore, reflecting a 10 per cent YoY increase, supported by growth in advances. However, net interest margins remained steady at 3.46 per cent, slightly down from 3.47 per cent in Q2FY24.
Provisions increased marginally to Rs 2,700 crore, up from Rs 2,602 crore in Q1FY25 but lower than Rs 3,310 crore in Q2FY24. Asset quality slightly deteriorated, with gross Non-Performing Assets (NPAs) rising to 1.36 per cent from 1.33 per cent in the previous quarter, while net NPAs edged up to 0.41 per cent.
The bank also reported robust deposit growth, with total deposits rising 15 per cent YoY to Rs 25 trillion. The bank’s advances reached Rs 25.19 trillion, a 7 per cent YoY increase. Retail loans grew 11.3 per cent, and commercial and rural banking loans surged 17.4 per cent, while corporate and wholesale loans contracted by 12 per cent.
Also Read | HDFC Bank Q1FY25 Results: Net Profit Surges 35% to Rs 16,175 Cr
The bank’s credit-to-deposit ratio is around 100 per cent, a rise from the pre-merger level of 86-87 per cent. CFO Srinivasan Vaidyanathan indicated that the bank aims to bring this ratio back to pre-merger levels and highlighted a strategic shift in unsecured loan growth, which has been slowed to 10 per cent YoY compared to the industry’s 21 per cent growth.
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