HDFC Bank, the country’s largest private lender, has reported a strong performance for the January-March quarter of financial year 2024-25. The bank posted a 6.7% increase in net profit, reaching ₹17,616 crore, compared to the same period last year. On a quarter-on-quarter basis, profit rose by 5.3%.
Key Highlights:
- Strong Profit Growth: Profit growth exceeded market expectations, thanks to better asset quality and a sharp fall in provisions for bad loans.
- Provisions Drop: Provisions and contingencies (money set aside for potential bad loans) fell sharply from ₹13,510 crore in March 2024 to just ₹3,190 crore this quarter.
- Asset Quality:
- Gross NPA (bad loans) stood at 1.33% in March 2025, slightly up from 1.24% a year ago, but improved compared to 1.42% in December 2024.
- Net NPA came down to 0.43%, compared to 0.46% in the previous quarter.
- In absolute terms, gross NPAs dropped to ₹35,223 crore from ₹36,019 crore in December 2024.
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No Forecasts, But Positive Outlook:
Chief Financial Officer Srinivasan Vaidyanathan said the bank is not giving any specific forecasts for loan, deposit, or margin growth. However, he said the credit-deposit ratio (a measure of how much the bank is lending compared to deposits) is expected to return to pre-merger levels of over 87% by the end of this fiscal.
Interest Income and Margins:
- Net Interest Income (NII), the bank’s main source of income, rose by 10.3% to ₹32,070 crore.
- Net Interest Margin (NIM), a measure of profitability, stood at 3.54% of total assets and 3.73% of interest-earning assets.
- Excluding a ₹700 crore income tax refund, the core NIM was slightly lower at 3.46%.
Other Income:
The bank earned ₹12,030 crore from other income sources such as:
- Fees and commissions: ₹8,530 crore
- Foreign exchange & derivatives: ₹1,440 crore
- Trading gains: ₹390 crore
- Miscellaneous income: ₹1,670 crore (includes recoveries and dividends)
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Dividend Announced:
HDFC Bank’s board has recommended a dividend of ₹22 per share (face value ₹1) for FY25. The record date for the dividend is set as June 27, 2025.
