HDFC Bank Q2 Results: Net Profit Rises 5% Led by NII; Asset Quality Worsens
NII rose 10% to Rs 30,114 crore in the second quarter.
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Higher net interest income helped HDFC Bank Ltd to report a 5% on year rise in net profit for the September quarter at Rs 16,821 crore. The bank's bottomline also surpassed analysts' expectations of 16,000 crore polled NDTV Profit.
HDFC Bank Q2 FY25 Earnings Highlights (Standalone)
Net profit up 5% to Rs 16,821 crore versus Rs 15,976 crore.
NII up 10% to Rs 30,114 crore versus Rs 27,385 crore.
Gross NPA at 1.36% versus 1.33%.
Net NPA at 0.41% Vs 0.39%.
Net interest income of the bank rose 10% on year to Rs 30,114 crore. Slight deterioration in asset quality capped the rise in profit after tax.
Core net interest margin stood at 3.46% for the bank, and 3.65% on an interest earning asset basis. In the June quarter, the respective figures were at 3.5% and 3.7%.
The private sector bank's asset quality deteriorated, with the gross non-performing assets ratio falling to 1.36% as of Sept. 30, compared to 1.33% in the previous quarter. The net NPA ratio rose to 0.41% from 0.39% in the prior quarter.
Provisions of the bank fell to Rs 2,700 crore against Rs 2,903 crore a year, further aiding net profit.
Gross advances for HDFC Bank rose 7% year-on-year to Rs 25.2 lakh crore. Retail loans rose 11.3%, commercial and rural banking loans were up 17.4%, while wholesale loans were up 12%.
Total deposits rose 15% from last year to Rs 25 lakh crore. Current account, savings account deposits accounted for 35.3% of total deposits, as of September 30.
