HDFC Bank, India’s largest private sector lender, reported a standalone net profit of ₹16,735.5 crore for the October-December quarter (Q3) of FY25. This marks a 2.2% year-on-year (YoY) increase from ₹16,372.5 crore in Q3FY24. However, sequentially, the profit saw a slight dip from ₹16,820.9 crore reported in the previous quarter.
The bank’s shares responded positively to the results, climbing 1.7% intraday to reach ₹1,670.25 per share. Recovering from a day’s low of ₹1,625.3, the stock gained 2.7% during the session. The results also had a positive impact on the broader market, with the Nifty Bank index reversing losses to trade 0.3% higher at 48,722.
HDFC Bank’s net interest income (NII) rose to ₹30,653 crore, registering an 8% YoY growth compared to ₹28,471.3 crore in the same quarter last year. Analysts had estimated a 7% YoY growth in NII. The net interest margin (NIM) stood at 3.43%, slightly higher than the 3.4% YoY but marginally lower than 3.46% QoQ.
The bank’s asset quality weakened during the quarter, with the gross non-performing asset (GNPA) ratio rising to 1.42% from 1.36% QoQ and 1.26% YoY. The net NPA ratio also increased to 0.46%, compared to 0.41% QoQ and 0.31% YoY.
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Provisions and contingencies surged to ₹3,135.8 crore, up from ₹2,700.5 crore in Q2FY25. However, on a YoY basis, provisions were lower than the ₹4,216.6 crore reported in Q3FY24.
HDFC Bank’s Q3 performance exceeded Street estimates for profit growth, which analysts had pegged at up to 2% YoY while predicting a quarter-on-quarter decline of up to 6%.
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