HDFC Bank's Steady Climb: Profit Margins and Asset Quality

HDFC Bank reported a slight 2% increase in standalone net profit to Rs 16,736 crore in the third quarter of FY25, with a total income rise to Rs 87,460 crore. However, the consolidated total income fell, and asset quality saw some deterioration with increased Non-Performing Assets.

India's largest private sector lender, HDFC Bank, has announced a modest 2% rise in its standalone net profit for the third quarter ending December 2024, reaching Rs 16,736 crore. This marks an improvement from the Rs 16,373 crore recorded in the same period last fiscal year, according to the bank's latest financial results.

Despite this profit increase, the bank's consolidated total income experienced a decline, dropping to Rs 1,12,194 crore from Rs 1,15,016 crore during the October-November quarter of the previous year. Conversely, the total income on a standalone basis saw a rise to Rs 87,460 crore compared to Rs 81,720 crore in the corresponding quarter of FY24.

The bank's asset quality presented a mixed picture, with gross Non-Performing Assets (NPAs) worsening to 1.42% of total loans by December 2024, up from 1.26% a year prior. Similarly, net NPAs increased to 0.46%, compared to 0.31% recorded in 2023, reflecting challenges in loan performance.

(With inputs from agencies.)