HDFC Bank Q2 results: Private Lender Recorded 5% Jump In Net Profit

The bank reported a net interest income (NII) of Rs 30,110 crore for Q2 FY25, reflecting a 10 per cent increase compared to the same period last year, driven by growth in advances

HDFC Bank, India’s largest lender, reported a net profit of Rs 16,820 crore for the quarter ending September 2024 (Q2 FY25), marking a 5.3 per cent year-on-year (YoY) growth, driven by increased net interest income (NII) and reduced provisions. On a sequential basis, net profit rose by 4 per cent from Rs 16,175 crore in Q1 FY25. In the same quarter last year (Q2 FY24), the bank had recorded a net profit of Rs 15,976 crore.

The bank reported a net interest income (NII) of Rs 30,110 crore for Q2 FY25, reflecting a 10 per cent increase compared to the same period last year, driven by growth in advances. Sequentially, NII saw a slight rise from Rs 29,837 crore in Q1 FY25. The net interest margin for the lender remained relatively stable at 3.46 per cent in Q2 FY25, compared to 3.47 per cent in the previous quarter.

Provisions for the lender reached Rs 2,700 crore in Q2 FY25, up from Rs 2,602 crore in Q1 FY25 and down from Rs 3,310 crore in Q2 FY24. The bank's asset quality showed signs of deterioration, with gross non-performing assets (NPAs) rising to 1.36 per cent in Q2 FY25, compared to 1.33 per cent in Q1 FY25 and 1.34 per cent in Q2 FY24. Net NPAs stood at 0.41 per cent, an increase from 0.39 per cent in the previous quarter. The bank’s total credit cost was 0.43 per cent in Q2 FY25, down from 0.49 per cent in the same period last year.

The bank mobilized over Rs 1.2 trillion in deposits during Q2 FY25, bringing total deposits to Rs 25 trillion—an increase of 15 per cent YoY and 5 per cent sequentially. The average deposit for the bank stood at Rs 23.50 trillion in Q2 FY25.

In this quarter, deposit growth outpaced credit growth, with deposits rising by 5 per cent compared to a 1.3 per cent increase in gross advances from Q1. The bank reported gross advances of Rs 25.19 trillion in Q2 FY25, marking a 7 per cent YoY increase and a 2.3 per cent rise sequentially. Retail loans grew by 11.3 per cent YoY, while commercial and rural banking loans saw a growth of 17.4 per cent. In contrast, corporate and other wholesale loans declined by 12 per cent.