HDFC Bank, India’s largest private lender, reported a 2.2% year-on-year increase in standalone net profit for Q3 FY25, reaching ₹16,736 crore. The results exceeded market expectations, which had pegged profits at ₹16,650 crore, as per a Moneycontrol survey. The bank’s net interest income (NII) grew 8% YoY to ₹30,690 crore, aligning with forecasts, while its net interest margin (NIM) remained steady at 3.4%.
HDFC Bank Q3 FY25 Results: Net Profit Rises 2.2% YoY, Beats Expectations Despite NPA Concerns
Despite a rise in non-performing assets (NPAs), the bank’s core earnings maintained robust growth. Gross NPAs climbed 16% YoY to ₹36,019 crore, raising the GNPA ratio to 1.42% from 1.26% last year. Similarly, net NPAs surged 51% to ₹11,588 crore, with the NNPA ratio increasing to 0.46% from 0.31%.
The bank reduced its provisions by 25% YoY to ₹3,154 crore during the quarter. Total deposits grew by 15.8% YoY to ₹25.6 lakh crore, while total advances rose 3% to ₹25.2 lakh crore.
Following the announcement, HDFC Bank’s stock gained 1.3%, trading at ₹1,664 on the NSE, lifting benchmark indices. Despite challenges in asset quality, investor sentiment remained optimistic, driven by the bank’s solid financial performance.
