HDFC Bank, India's largest private sector bank, posted a 5% year-on-year (YoY) increase in its net profit for the second quarter of FY25, reaching ₹16,821 crore, surpassing market expectations.

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HDFC Bank Q2 FY25 net profit rises 5%, beats estimates

Published on October 19, 2024

HDFC Bank’s Q2 FY25 net profit topped Street expectations, while Net Interest Income dipped marginally short of estimates. Gross NPA at the end of the quarter grew a little to 1.36%.

HDFC Bank, India’s largest private sector bank, posted a 5% year-on-year (YoY) increase in its net profit for the second quarter of FY25, reaching ₹16,821 crore, surpassing market expectations.

A poll of seven brokerages had estimated the bank’s net profit to be ₹16,570 crore for the fiscal second quarter.

Key Financial Highlights

Net Interest Income (NII): The bank’s NII rose 10% YoY to ₹30,114 crore, slightly lower than the ₹30,306 crore forecasted by analysts. The core net interest margin stood at 3.46% on total assets and 3.65% on interest-earning assets.
Other Income: Non-interest revenue for the quarter amounted to ₹11,480 crore, a 7% increase from ₹10,710 crore in the same period a year ago.

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Asset Quality

Gross NPAs: The bank’s gross non-performing assets (GNPA) were reported at 1.36% as of September 30, 2024, slightly higher than 1.33% at the end of the previous quarter.
Net NPAs: Net NPAs stood at 0.41%, up from 0.39% in the prior quarter. In absolute terms, gross NPAs rose to ₹34,251 crore from ₹33,026 crore, while net NPAs climbed to ₹10,309 crore from ₹9,508 crore.
Provisions: HDFC Bank’s provisions for the quarter totaled ₹2,701 crore, marking a 4% increase from ₹2,602 crore in the previous quarter.

Deposit Growth

Total Deposits: The bank saw a 15.1% YoY increase in total deposits, which amounted to ₹25 lakh crore as of the end of September 2024.

CASA Growth: Current and savings account (CASA) deposits grew 8.1% YoY, with savings deposits at ₹6.08 lakh crore and current account deposits at ₹2.75 lakh crore.

The overall results reflect a steady performance in line with expectations, with robust growth in deposits and NII, though slight pressure remains on asset quality due to rising NPAs.