At 10.55 a.m. on the NSE, HDFC Bank’s shares were trading at ₹1,658.10, reflecting a decrease of ₹7.95 or 0.48 percent.
For the December quarter, HDFC Bank reported a 2 percent year-on-year increase in net profit, reaching ₹16,740 crore. The bank’s financial results showed nuanced trends in key metrics. Net interest income increased by 2 percent quarter-on-quarter to ₹30,650 crore, with a slight decrease in net interest margin to 3.43 percent from the previous quarter’s 3.5 percent.
There was a marginal deterioration in the bank’s asset quality, with gross non-performing assets (GNPAs) rising to 1.42 percent from 1.36 percent in the previous quarter. Despite this, CFO Srinivasan Vaidyanathan highlighted the overall strength of the portfolio, attributing seasonal agricultural slippages as the primary factor while stating that the core portfolio remained stable.
Deposit growth outpaced credit expansion, with deposits increasing by 16 percent year-on-year to ₹25.63 lakh crore. Advances grew by 6 percent year-on-year to ₹26.83 lakh crore, with retail loans expanding by 10 percent to ₹13.42 lakh crore and corporate loans contracting by 10 percent to ₹4.80 lakh crore.
During the quarter, HDFC Bank conducted loan sell-downs amounting to ₹20,000 crore, with a total of approximately ₹45,000 crore over the nine-month period. The bank’s strategic outlook involves maintaining robust deposit growth while aiming to keep loan book expansion below the industry average for the current fiscal year. In the following years, the bank plans to align with and potentially exceed industry growth.
The information was originally published on January 23, 2025.