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HDFC Bank Q3 2025 results: Net profit rises 2.2%

Jan 22, 2025 03:30 PM IST

HDFC Bank on Wednesday reported a 2.3 per cent year-on-year rise in its consolidated net profit to ₹17,657 crore for the October-December quarter.

HDFC Bank Q3 2025 results: HDFC Bank, India's largest private sector lender, on Wednesday announced its third quarter earnings for the financial year 2024-25. The bank's profit that came in line with market expectations even as its gross bad loans increased.

HDFC Bank Q3 2025 results: HDFC Bank Ltd has announced its third quarter earnings for the financial year 2024-25 on Wednesday, January 22, 2025.(Reuters)
HDFC Bank Q3 2025 results: HDFC Bank Ltd has announced its third quarter earnings for the financial year 2024-25 on Wednesday, January 22, 2025.(Reuters)

The net income rose 2.3% to 16,735.50 crore, compared to 16,372.54 crore during the third quarter of the previous year.

Total income on a standalone basis rose to 87,460 crore in the third quarter of 2024-25 against 81,720 crore in the year-ago period.

Its core net interest income grew by 7.7 per cent to 30,650 crore on the back of the net interest margin being stable on-year at 3.43 per cent and the bank's loan growth coming at 6.6 per cent.

The non-interest income was up 2.8 per cent at 11,450 crore on a good growth in core fees and commissions line.

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Indian lenders are reporting higher funding costs as they struggle to attract cheap retail deposits. Banks are also grappling with rising bad loans as economic growth slows and urban consumption weakens.

HDFC has been shrinking its retail loan portfolio as it seeks to improve its credit-deposit ratio that shot up after its merger with Housing Development Finance Corp. in 2023. The credit-ratio is currently at 98% and the bank hopes to bring it down further to pre-merger levels of between 85% and 90% after the next couple of years, according to Chief Financial Officer Srinivas Vaidyanathan.

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The bank securitised or assigned nearly 2.16 billion rupees of retail loans, including mortgage and auto loans, Vaidyanathan said on a post-earnings media call Wednesday. The bank planned to keep securitising retail loans in its portfolio and will “endeavor to scale this up further” in the next two to three years, he said.

“As the credit growth moves up, our interest is to engage with the customer, get the customer relationship and not necessarily keep it on the balance sheet,” Vaidyanathan said.

The bank’s gross bad loans increased to 1.42% in the December quarter, surpassing analyst estimates of 1.37% while its provisions registered a 17% growth over the previous quarter.

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How did HDFC Bank shares perform?

HDFC Bank shares gained 1.42 per cent to close at 1,665.05 apiece on the BSE against gains of 0.75 per cent on the benchmark.

During the previous trading session, its shares had also dropped marginally by 0.33%, reaching 1,645.75 . However, the prices have dropped 8.62% over the last month.

The market in general is also rallying despite a crash on Tuesday, with the benchmark BSE Sensex up by 482.75 points or 0.64%, reaching 76,321.11, while the broader NSE Nifty going up 102.70 points or 0.45%, reaching 23,127.35.

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