HDFC Bank Q3 Results: What Were the Major Highlights?

Explore the latest HDFC Bank Q3 results! Uncover essential financial data, trends, and expert commentary to stay informed about the bank’s performance.

Trending News Fox, Digital Desk Team, Kolkata

Edited by Saibal Bose

HDFC Bank is India’s largest private lender. It announced its financial results for the third quarter ending December 31, 2024. This announcement was made on January 22, 2025. The bank reported a standalone net profit of ₹16,736 crore, marking a 2.2% year-on-year (YoY) increase from ₹16,372.5 crore in the same quarter the prior year.

Key Financial Highlights:

• Net Interest Income (NII): The bank’s NII rose by 7.7% YoY to ₹30,653 crore, up from ₹28,452 crore in Q3FY24.
• Net Revenue: Total net revenue increased by 6.3%, reaching ₹42,110 crore compared to ₹39,610 crore in the corresponding quarter of the earlier year.
• Net Interest Margin (NIM): The NIM stood at 3.43% for the quarter.

Asset Quality:

The bank experienced a slight deterioration in asset quality, with the Gross Non-Performing Assets (GNPA) ratio increasing to 1.42% from 1.36% in the earlier quarter. This rise was primarily attributed to an uptick in agricultural loans turning non-performing.

Provisions and Contingencies:

Provisions for bad loans and other contingencies rose by 17% sequentially, amounting to ₹3,154 crore.

Advances and Deposits:

• Gross Advances: The bank’s gross advances increased by 0.9% sequentially to ₹25.43 lakh crore.
• Deposits: Total deposits grew by 4.2% over the last quarter, reaching ₹24.53 lakh crore.

Merger Impact:

After its merger with parent company HDFC in July 2023, HDFC Bank’s loan portfolio expanded significantly. Nonetheless, the merger added a smaller proportion of deposits, necessitating an increased focus on deposit mobilization to support loan growth.

Despite the mixed results, HDFC Bank’s shares closed 1.4% higher after the earnings announcement.

Market Reaction:

In summary, HDFC Bank’s Q3FY25 performance showcased modest growth in net profit and NII. There are challenges in asset quality. The bank needs to enhance deposit mobilization post-merger.

Also, read HDFC AMC Q3 Results: A Comprehensive Overview