HDFC Bank has reported a decline in its provisions for the second quarter of FY25. The bank’s total provisions stood at ₹2,700.5 crore, representing a 7% year-on-year (YoY) decrease compared to ₹2,903.8 crore in the same quarter last year. This reduction in provisions reflects improved asset quality and a lower requirement for provisioning against bad loans.
On a quarter-on-quarter (QoQ) basis, provisions increased by 3.8%, up from ₹2,602.06 crore in the previous quarter (Q1 FY25). The slight rise in provisions compared to the previous quarter can be attributed to the bank’s cautious approach to managing risks, particularly in light of economic conditions and regulatory requirements.
Despite the minor QoQ increase, the overall decline in provisions YoY showcases the bank’s ability to manage its asset quality effectively while maintaining a prudent approach to risk management.
