HDFC Bank Q1 Results: Profit Surges 35% YoY At Rs 16,175 Crore

The bank recorded a net interest income (NII) of Rs 29,837 crore, marking a 26.4 per cent increase from last year, driven by strong growth advances

HDFC Bank, India's largest private sector lender, announced a 35 per cent year-on-year (YoY) growth in net profit to Rs 16,175 crore for the quarter ending June 2024 (Q1FY25), supported by robust net interest income (NII) and reduced provisions. Analysts at Bloomberg had projected the bank's net profit to be around Rs 15,652 crore.

However, compared sequentially, the lender's net profit declined by 2 per cent from Rs 16,511.85 crore in Q4FY24, primarily due to slower income growth and increased tax expenses. In the same period a year ago (Q1FY24), the lender reported a net profit of Rs 11,952 crore.

"Total deposits were at Rs 237.91 crore as of June 30, 2024, an increase of 24.4 per cent over June 30, 2023. CASA deposits grew by 6.2 per cent with savings account deposits at Rs 59.64 crore and current account deposits at Rs 26.73 crore," HDFC Bank stated in a press release.

The figures for Q1FY25 incorporate the operations of former HDFC Ltd., which merged with the bank on July 1, 2023. The bank recorded a net interest income (NII) of Rs 29,837 crore, marking a 26.4 per cent increase from last year, driven by strong growth advances. Sequentially, NII rose by 2.6 per cent from Q4FY24.

The lender's provisions decreased by 9 per cent Yoy to Rs 2,602 crore in Q1FY25, and sequentially, provisions dropped over fivefold from Rs 13,511 crore in Q4FY24. However, the bank's asset quality deteriorated, with the gross non-performing asset (NPA) ratio rising by 9 basis points sequentially to 1.33 per cent in Q1FY25. Net NPAs also increased by 6 basis points to 0.39 per cent during this period.

In Q1FY25, the bank reported a 52.6 per cent YoY increase in advances, driven primarily by robust growth in retail loans, which surged over 100 per cent YoY. This was followed by commercial and rural banking loan growth at 23 per cent YoY and corporate and wholesale loans at 18.7 per cent YoY.

Deposit growth, however, lagged behind loan growth. The bank registered a 25.2 per cent YoY deposit growth to Rs 22.83 trillion in Q1FY25. Current account savings account (CASA) deposits increased by 8.1 per cent YoY to Rs 8.10 trillion.