HDFC Bank shares rise over 3% as Q2 net profit jumps 5.3% to ₹16,821 crore, beats street estimates

HDFC Bank share price: HDFC Bank shares rose more than 3% on Monday after India's largest private lender posted a 5.28% increase in its latest September net profit, beating street expectations.

In early trade, the stock jumped as high as ₹1,734,6 apiece, up 3.1%, on the National Stock Exchange (NSE). As of 9:56 am, the scrip was up 2.7% higher at ₹1,727.6 a unit.

The market capitalisation of the bank stands at ₹13,18,293.26 crore.

HDFC Bank Q2 net up 5.3%

On a consolidated basis, the bank reported a 6% growth in post-tax profit to ₹17,826 crore, as against ₹16,811 crore in Q2 FY24.

The private lender said in a regulatory filing that total income surged to ₹85,500 crore during the July-September quarter of the current fiscal year, compared to ₹78,406 crore a year ago.

The bank posted interest income of ₹74,017 crore in the quarter under review as against ₹67,698 crore in the year-ago period,

Net Interest Income (NII) enhanced to ₹30,110 crore, from ₹27,390 crore in Q2 FY24, reflecting a 10% growth.

As for asset quality, the bank experienced a slight deterioration, with gross Non-Performing Assets (NPAs) increasing to 1.36% of the gross loans by the end of September 2024 from 1.34% a year ago.

Similarly, net NPAs or bad loans grew to 0.41% from 0.35% at the end of the Q2 of the previous fiscal.

"The bank, which had guided towards doubling in size in four years recently, is operating as per market dynamics right now," HDFC Bank Chief Financial Officer S Vaidyanathan said.

Among the subsidiaries, HDB Financial posted a marginal dip in profit at ₹590 crore in the quarter that ended September 2024, while that of the life insurance unit increased to ₹430 crore from ₹380 crore.

The bank's general insurance arm reported a net profit fall to ₹200 crore from ₹240 crore, while the asset management company's (AMC) profit after tax surged to ₹580 crore in the latest quarter from ₹440 crore a year ago.