HDFC Bank Q3 net profit rises 2% to ₹16,736 crore, gross NPA rises

HDFC Bank Ltd. reported a 2% growth in net profit for the third-quarter ended December 31, 2024, compared with ₹16,373 crore in the year-ago period.

Profit after tax, adjusted for trading and mark to market gains, prior year one-off provisions, and prior year tax credits, grew 13.6% over the quarter ended December 31, 2023, the private sector lender said.

Net revenue grew 6.3% to ₹42,110 crore from ₹39,610 crore in the year-ago period. Net interest income (interest earned less interest expended) for the quarter grew 7.7% to ₹30,650 crore from ₹28,470 crore in the same period last year.

Asset quality weakened marginally during the quarter as gross NPAs increased when compared with the same period last year. The bank’s gross non-performing assets were at 1.42% of gross advances as on December 31, 2024 (1.19% excluding NPAs in the agricultural segment), as against 1.26% as on December 31, 2023, (1.11% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.46% of net advances as on December 31, 2024, the bank said.

Provisions and contingencies for the quarter were ₹ 3,150 crore as against ₹4,220 crore for the year-earlier period.

The bank’s total balance sheet size as of the end of the quarter was ₹37,59,000 crore as against ₹34,92,600 crore a year ago. Average deposits were ₹ 24,52,800 crore, a growth of 15.9% over the same period last year. The bank’s advances under management, on an average basis, were ₹26,27,600 crore for the quarter, up 7.6% over the year-earlier period.

Gross advances were at ₹25,42,600 crore, up 3% over the year-ago period. While retail loans grew by 10%, commercial and rural banking loans grew by 11.6% and corporate and other wholesale loans were lower by 10.4%.

Overseas advances constituted 1.8% of total advances, the bank said in a filing.

Total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 20% (18.4% as on December 31, 2023) as against a regulatory requirement of 11.7%. 

Tier 1 CAR was at 18.0% and Common Equity Tier 1 Capital ratio was at 17.5% as of December 31, 2024. Risk-weighted Assets were at ₹ 25,305 billion, the bank said.

The bank’s consolidated profit after tax was ₹17,657 crore, which was marginally higher than ₹17,258 crore in the year-ago period.