HDFC Bank Q3 results: Profit rises 2% YoY to ₹16,736 cr despite spike in NPA

HDFC Bank, the country’s largest private sector lender, has clocked net profit of ₹16,736 crore in the third quarter ended December 31, 2024. The profit grew 2% year-on-year (YoY) compared to ₹16,373 crore posted in the same period last year, as per the exchange filing.

Net interest income (NII), the difference between interest revenues and interest expenses, grew 7.7% to ₹30,650 crore in Q3 FY25, from ₹28,470 crore in the quarter ended December 31, 2023. The core net interest margin (NIM) was at 3.43% on total assets, and 3.62% based on interest earning assets.

On the asset quality front, gross non-performing assets (GNPA) increased 16.1% YoY to ₹36,019 crore as of December 31, 2024, from ₹31,012 crore a year ago. The GNPA ratio rose by 18 basis points to 1.42% from 1.26% in Q3 FY24.

In a similar trend, net non-performing assets (NNPA) spiked 51.2% YoY to ₹11,588 crore, with the NNPA ratio climbing by 15 basis points to 0.46% versus 0.31% in the same period last year.

During the quarter under review, provisions dropped to ₹3,154 crore from ₹4,217 crore in the same period last year, down 25% YoY. On the other hand, slippages increased to ₹8,800 crore in Q3 FY25 from ₹7,800 crore during the September quarter of FY25.

HDFC Bank’s total balance sheet size was ₹37.59 lakh crore as of December 31, 2023, compared to ₹34.93 lakh crore in the corresponding period last year. The total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 20% versus 18.4% in Q3 FY24, and as against a regulatory requirement of 11.7%.

The private lender’s deposits grew 15.8% YoY to ₹25.6 lakh crore as of December 31, 2024, while gross advances were up 3% to ₹25.4 lakh crore during the squarter under review.

As of December 31, 2024, HDFC Bank’s distribution network stood at 9,143 branches and 21,049 ATMs across 4,101 cities. The number of employees were at 2,10,219 as compared to 2,08,066 as of December 31, 2023.

Post Q3 results, shares of HDFC Bank rose 1.4% to settle at ₹1,665, with a market capitalisation of ₹12.73 lakh crore. The banking heavyweight has fallen over 8% so far this month, while it lost 4% in three months. The counter has gained over 14% in one year, while it delivered flat return in the past six months.