HDFC Bank Q2 FY25 Results: India's largest private bank beats analysts' forecasts with Rs 16,821 crore profit

HDFC Bank Q2 FY25 Results: HDFC Bank—the country's largest private sector lender—on Saturday reported a standalone net profit of Rs 16,821 crore for the July-September period, marking growth of 5.2 per cent compared with the corresponding quarter a year ago that was better than analysts' expectations. Zee Business analysts had expected HDFC Bank to report a net profit of Rs 16,292 crore for the fiscal second quarter.

The banking behemoth staged a largely positive financial performance with a minor deterioration in asset quality.   

HDFC Bank said its net profit grew 17 per cent over the year-ago period when adjusted for trading and mark-to-market (MTM) gains as well as tax credits. 

HDFC Bank Q2 FY25 Results | Net interest income (NII) and net interest margin (NIM) 

The lender registered a 10 per cent year-on-year increase in net interest income (NII)—or the difference between the interest earned and the interest paid—to Rs 30,110 crore for the fiscal second quarter.

Its core net interest margin (NIM)—a key measure of profitability for financial institutions—stood at 3.46 per cent for the quarter ended September 30, in line with analysts' expectations. 

According to Zee Business research, HDFC Bank was estimated to register net interest income of Rs 30,048 crore with margin at 3.45-3.5 per cent for the second quarter of the current financial year.

HDFC Bank Q2 FY25 Results | Provisions and contingencies

HDFC Bank logged a 6.9 per cent decline in provisions and contingencies to Rs 2,700 crore.

HDFC Bank Q2 FY25 Results | Deposit growth

HDFC Bank reported a 15.1 per cent year-on-year increase in total deposits to Rs 25,00,100 crore, as of September 30. 

The lender said its CASA deposits grew 8.1 per cent with savings account deposits at Rs 6,08,100 crore and current account deposits at Rs 2,75,400 crore. 

HDFC Bank Provisions and Contingencies

HDFC Bank logged a 6.9 per cent decline in provisions and contingencies to Rs 2,700 crore.

HDFC Bank asset quality

HDFC Bank logged a slight deterioration in its asset quality, measured by the proportion of bad assets in total loans. 

Its gross non-performing assets (GNPAs) stood at 1.36 per cent as a percentage of total loans for the September quarter as against 1.33 per cent for the previous three months, while net non-performing assets (NNPAs) worsened to 0.41 per cent from 0.39 per cent.   

HDFC Bank Share Price

HDFC Bank shares ended higher by Rs 7.8, or 0.5 per cent, at Rs 1,681.2 apiece on Friday.

As of October 18, the HDFC Bank stock has grown 11.2 per cent in the past one year, underperforming gains of 26.7 per cent and 19.1 per cent in the Nifty50 and Nifty Bank indices respectively. 

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