HDFC Bank shares rise after 35% YoY jump in Q1 net profit

Shares of HDFC Bank opened in the green on Monday, July 22, in the aftermath of the private lender posting a year-on-year rise in net profit and net interest income for the first quarter of fiscal year 2024-25.

The stock opened at ₹1,617 apiece on the National Stock Exchange (NSE), up 0.6% as against the last closing price. At 9:42 am, it peaked to a high of ₹1,638, up 1.91% as against the previous session's close.

On Saturday, HDFC Bank had posted its results for the June 2024 quarter. The standalone net profit increased 35.3% year-on-year (YoY) to ₹16,175 crore, as compared to ₹11,952 crore in Q1FY24.

On a sequential basis, however, the net profit was down 2% as compared to ₹16,512 crore recorded in the March 2024 quarter.

The bank's net interest income (NII), which is the difference between interest earned and interest paid, rose 26.4% YoY to ₹29,837 crore.

Sequentially, the NII grew by 2.6% as compared to ₹29,078 crore clocked in the fourth quarter of the previous fiscal year.

Asset quality drops

HDFC Bank's gross non-performing asset (NPA) increased 6% quarter-on-quarter to ₹33,026 crore in Q1FY25, as compared to ₹31,173 crore in the preceding March quarter.

The gross NPA ratio jumped by 9 basis points sequentially, as it stood at 1.33% in Q1FY25 as against 1.24% in Q4FY24.

The net NPA rose 17.5% sequentially. It stood at ₹9,508.4 crore in Q1FY25, as against ₹8.091.7 crore in Q4FY24.

The net NPA ratio increased by 6 basis points to 0.39%, as against 0.33% in the preceding March quarter.