HDFC Bank’s Q3FY24 profit rises 2.2% to Rs 16,735 crore; gross NPAs increase

Net interest income (NII)—the difference between interest earned and interest paid—climbed 7.7% year-on-year to Rs 30,650 crore.

Meanwhile, other income remained steady at Rs 11,450 crore.

Mark-to-market gains on investments plunged to Rs 70 crore from Rs 1,470 crore during the corresponding quarter last year.

The bank reported a net interest margin of 3.43% for Q3 FY25.

Provisions and contingencies fell to Rs 3,150 crore, down from Rs 4,220 crore in the same period a year ago.

However, asset quality weakened.

Gross non-performing assets (NPAs) rose to Rs 36,019 crore from Rs 34,251 crore in the previous quarter and Rs 31,012 crore a year earlier, translating to a gross NPA ratio of 1.42%, compared to 1.36% in September 2024 and 1.26% in December 2023.

Similarly, net NPAs increased to 0.46%, up from 0.41% in the prior quarter and 0.31% a year ago.

Gross advances reached Rs 25.4 trillion as of December 31, 2024, reflecting a 3.0% year-on-year growth.

Retail loans grew by 10.0%, commercial and rural banking loans expanded by 11.6%, but corporate and other wholesale loans contracted by 10.4%.

Total deposits rose to Rs 25.6 trillion, a 15.8% increase over the previous year.

Current account and savings account (Casa) deposits grew 4.4%, with savings deposits at Rs 6.05 trillion and current account deposits at Rs 2.6 trillion, making up 34.0% of total deposits.