HDFC Bank Q3 Results: Profit Growth Disappoints, Loan Quality Dips

HDFC Bank reported a 2.2% year-on-year (YoY) increase in net profit for Q3 FY25, reaching ₹16,736 crore, slightly below market estimates of ₹16,650 crore. Net interest income (NII) grew 8%, amounting to ₹30,653 crore. However, asset quality showed marginal deterioration, with gross non-performing assets (NPAs) at 1.42% and net NPAs at 0.46%.

Other income, including fees and commissions, grew by 12% to ₹7,654 crore. This growth helped offset an increase in operating expenses, which rose 10% to ₹14,895 crore. Despite an uptick in expenses, the cost-to-income ratio remained stable at 39.9%, reflecting efficiency in managing operational costs.

Provisioning for bad loans stood at ₹3,865 crore, up 14% from last year’s ₹3,389 crore, indicating a cautious stance on asset quality amidst macroeconomic uncertainties. The bank maintained a healthy capital adequacy ratio (CAR) of 18.2%, ensuring strong risk coverage.

Overall balance sheet growth remained robust, with total deposits rising 13% to ₹13.15 lakh crore and advances growing 12% to ₹12.1 lakh crore. Amidst global and regional economic challenges, HDFC Bank’s performance highlights its resilience and commitment to sustainable growth.