, India's largest private sector lender, announced its financial results for the third quarter ending December 31, 2024, reporting a net profit of ₹16,736 crore, a 2.2% increase from ₹16,372.5 crore in the same period last year.
Key Financial Highlights:
Net Interest Income (NII): The bank's NII rose by 8% year-on-year to ₹30,653 crore, up from ₹28,472 crore in the corresponding quarter of the previous fiscal year.
Operating Profit: Pre-provision operating profit increased by 5.72% to ₹25,000.40 crore, compared to ₹23,647.30 crore in the same quarter last year.
Asset Quality: The bank experienced a slight deterioration in asset quality, with gross non-performing assets (GNPA) rising to 1.42% from 1.36% in the previous quarter. This increase was primarily due to stress in agricultural loans.
Provisions: Provisions for loan losses and other contingencies grew by 17%, amounting to ₹31.54 billion, reflecting the bank's cautious approach amid rising loan defaults in the agricultural sector.
Loan and Deposit Growth:
Following its merger with parent company HDFC in July 2023, HDFC Bank's loan-to-deposit ratio increased to approximately 110%, necessitating a focus on deposit mobilization or a moderation in loan growth. In the December quarter, deposits grew by 4.2%, totaling ₹24.53 trillion, while gross advances saw a modest 0.9% increase, reaching ₹25.43 trillion.
Market Reaction:
Following the announcement of the quarterly results, HDFC Bank's shares closed 1.4% higher, indicating positive investor sentiment.
These results underscore HDFC Bank's resilience and strategic focus on balancing growth with asset quality in a dynamic economic environment.
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