HDFC Bank Q1 result: Net profit up 35% at Rs 16,175 cr, NII at Rs 29,837 cr

Country’s largest private sector lender HDFC Bank on Saturday reported a 35 per cent year-on-year (Y-o-Y) growth in net profit at Rs 16,175 crore for the quarter ended June 2024 (Q1FY25), aided by healthy net interest income (NII) and lower provisions. Analysts at Bloomberg had estimated that the bank may post a net profit of Rs 15,652 crore.

However, sequentially net profit of the lender was down 2 per cent from Rs 16,511.85 crore in Q4FY24 due to lower income growth and higher tax expenses.

The lender had reported a net profit of Rs 11,952 crore in the corresponding period a year ago (Q1FY24).

The figures for Q1FY25 include the operations of erstwhile HDFC Ltd., which was amalgamated with and into the bank on July 1, 2023.

The bank reported a NII of Rs 29,837 crore in Q1FY25, up 26.4 per cent from the corresponding period a year ago, aided by robust growth in advances.

Sequentially, NII was up 2.6 per cent sequentially from Q4FY24.

Provisions of the lender was down 9 per cent Y-o-Y to Rs 2,602 crore in Q1FY25 and sequentially provisions made by the lender were down over five times from Rs 13,511 crore in Q4FY24.

The bank’s asset quality declined as gross non-performing asset (NPA) ratio was up 9 basis points (bps) sequentially to 1.33 per cent in Q1FY25. Net NPAs also saw a 6 bps increase during this period to 0.39 per cent.

The bank reported a 52.6 per cent Y-o-Y rise in advances in Q1FY25 mainly aided by growth in retail loans, which were up over 100 per cent Y-o-Y, followed by growth in commercial and rural banking loans at 23 per cent Y-o-Y, and growth in corporate and wholesale loans at 18.7 per cent Y-o-Y.

Deposit growth, however, has trailed loan growth. In Q1FY25, the bank reported a 25.2 per cent Y-o-Y growth in deposits to Rs 22.83 trillion. Its current account savings account (Casa) deposits were up 8.1 per cent Y-o-Y to Rs 8.10 trillion.