India’s largest private sector bank, HDFC Bank, announced its financial results for the third quarter of FY25, posting a 2.2% year-on-year (YoY) increase in standalone net profit at ₹16,736 crore. The numbers surpassed Street expectations, which were pegged at ₹16,650 crore according to a Moneycontrol poll.
Key Highlights of HDFC Bank Q3 FY25 Results
- Net Interest Income (NII):
The bank’s NII, a crucial earnings metric, rose 8% YoY to ₹30,690 crore during the quarter. This growth was in line with market expectations, reflecting stable performance. - Net Interest Margin (NIM):
The NIM remained flat at 3.4%, indicating steady profitability despite rising pressures on asset quality. - Asset Quality Concerns:
- Gross Non-Performing Assets (GNPA): ₹36,019 crore, up 16% YoY from ₹31,012 crore.
- GNPA Ratio: Increased to 1.42% from 1.26% YoY (+18 basis points).
- Net Non-Performing Assets (NNPA): ₹11,588 crore, up 51% YoY.
- NNPA Ratio: Rose to 0.46% from 0.31% YoY (+15 basis points).
- Provisions:
Despite asset quality pressures, HDFC Bank reduced its provisions significantly by 25% YoY, down to ₹3,154 crore from ₹4,217 crore. - Deposits and Advances:
- Total Deposits: ₹25.6 lakh crore, marking a 15.8% YoY increase.
- Total Advances: ₹25.2 lakh crore, up 3% YoY.
Market Response
Despite the rise in NPAs and NPA ratios, the stock market reacted positively to the results. HDFC Bank’s share price rebounded from intraday lows, climbing 1.3% to trade at ₹1,664 on the NSE. This recovery also provided a boost to benchmark indices.
HDFC Bank’s Q3 FY25 results highlight its ability to maintain steady growth in core earnings despite challenges in asset quality. The robust rise in deposits and stable NII underline the bank’s resilience in a dynamic economic environment.
