
HDFC Bank, India’s largest private sector lender, reported its standalone financial results for the quarter ended December 31, 2024 (Q3FY25). The bank’s Net Interest Income (NII) saw a robust growth both year-on-year (YoY) and quarter-on-quarter (QoQ), underscoring its strong operational performance.
Key Highlights:
- Net Interest Income (NII):
- Q3FY25: Rs 30,653.25 crore
- Q2FY25: Rs 30,113.90 crore
- Q3FY24: Rs 28,471.34 crore
- YoY Growth: 7.66%
- QoQ Growth: 1.79%
- Interest Earned:
- Q3FY25: Rs 76,006.88 crore
- Q3FY24: Rs 70,582.61 crore
- Interest Expended:
- Q3FY25: Rs 45,353.63 crore
- Q3FY24: Rs 42,111.27 crore
The bank’s Gross NPAs and Net NPAs have shown resilience despite challenging market conditions.
Key NPA Metrics for Q3 FY25:
- Gross NPAs:
₹36,018.58 crore, up from ₹34,250.62 crore in the previous quarter, reflecting a slight increase. - Net NPAs:
₹11,587.54 crore, compared to ₹10,308.54 crore in Q2 FY25. - Gross NPA to Gross Advances Ratio:
1.42%, stable compared to 1.36% in Q2 FY25. - Net NPA to Net Advances Ratio:
0.46%, slightly higher than 0.41% in Q2 FY25.
Year-on-Year Comparison:
- Gross NPAs (YoY):
Increased from ₹31,011.67 crore in Q3 FY24 to ₹36,018.58 crore in Q3 FY25. - Net NPAs (YoY):
Increased from ₹7,664.10 crore in Q3 FY24 to ₹11,587.54 crore in Q3 FY25. - Gross NPA Ratio (YoY):
Up from 1.26% in Q3 FY24 to 1.42% in Q3 FY25. - Net NPA Ratio (YoY):
Increased from 0.31% in Q3 FY24 to 0.46% in Q3 FY25.
Performance Analysis:
The bank’s NII growth reflects a strong increase in its interest-earning assets and a well-managed cost of funds. The YoY growth of 7.66% was driven by higher advances and a stable interest rate environment, while the QoQ growth of 1.79% indicates consistent operational efficiency.
Additional Financial Metrics:
- Total Income: Rs 87,460.44 crore (up 8.48% YoY from Rs 80,717.65 crore in Q3FY24).
- Net Profit: Rs 16,735.50 crore, a 2.59% YoY increase from Rs 16,372.54 crore in Q3FY24.
- Operating Profit: Rs 25,000.40 crore, up 5.92% YoY.
Conclusion:
HDFC Bank’s strong NII growth reinforces its position as a market leader in the Indian banking sector. The bank continues to demonstrate resilience through its effective interest rate management and expansion of interest-earning assets, further cementing its operational dominance.