HDFC Bank Q3 net profit increases 2.2% YoY to ₹16,735.5 crore, NII up 7.6%

HDFC Bank, the largest private-sector bank in India, reported a 2.2% increase in its standalone net profit to ₹16,735.5 crore for the third quarter of the current financial year, the company said in an exchange filing on Wednesday.

In the year-ago period, the post-tax profit stood at ₹16,372.54 crore.

The 2.2% rise in the net profit was largely driven by a 25% drop in the provisions at ₹3,153 crore. However, the provisions for contingencies and bad loans rose 16.8% sequentially from ₹2,700 crore.

Net interest income (NII) grew 7.6% to ₹30,655 crore in the quarter under review, as against ₹28,871.3 crore in the corresponding period last fiscal year.

The bank's asset quality deteriorated as gross non-performing assets (GNPAs) for the quarter expanded by 1.42% compared to 1.36% in Q2 FY25 and 1.28% in Q3 FY24.

Advances growth remained muted at 1.3% YoY to ₹25.18 lakh crore, compared to ₹24.8 lakh crore in the previous year's similar quarter. Deposits grew steadily at 15.8% YoY to ₹25.6 lakh crore, compared to ₹22.12 lakh crore. The loan-to-deposit ratio now stands comfortably below 100.

HDFC Bank share price

Following the earnings, shares of HDFC Bank climbed 1.57% to ₹1,668.25 apiece on the National Stock Exchange at 3:00 pm.

The quarter's interest income jumped 7.6% YoY to ₹76,006 crore compared to ₹70,582 crore. Similarly, the interest expenses grew by 7.7% to ₹45,353 crore.

The private lender said that retail loans grew by 10%, commercial and rural bank loans rose 11.6% and corporate and other wholesale loans were 10.4% lower.

As of December 31, 2024, HDFC Bank had 9,143 branches and 21,049 ATMs across 4,101 cities and towns as against 8,091 branches and 20,688 ATMs in December 2023.

The number of employees stood at 2,10,219 as of the October-December quarter of the current fiscal as against 2,08,066 in the same period a year back.