HDFC Bank's Q3 profit rises 2.2% to ₹16,736cr, below estimates
What's the story
India's top private lender HDFC Bank has reported a year-on-year growth of 2.2% in its standalone net profit for the December quarter.
The bank's net profit stood at ₹16,736 crore, up from ₹16,373 crore in the same quarter last year.
However, the figure was below market expectations which had anticipated a higher profit of ₹17,233 crore.
Financial growth
HDFC Bank's net interest income and interest earnings rise
HDFC Bank's net interest income (NII) for the quarter ending December 31, 2024, grew by 7.7% to ₹30,650 crore. This is up from ₹28,470 crore in the same quarter last year.
The bank's interest earnings for Q3 FY25 also amounted to ₹76,007 crore, a 7.6% increase from ₹70,583 crore in Q3 FY24.
Market performance
HDFC Bank's shares and interest expenses rise
Despite the lower-than-expected profit after tax (PAT), HDFC Bank's shares gained over 1% today, hitting a high of ₹1,659.90. However, the stock is down over 7% compared to last month.
The bank also reported a rise in its interest expenses for the quarter under review, paying out ₹45,354 crore.
This marks a 7.7% increase from ₹42,111 crore paid in Q3 FY24.
Revenue report
HDFC Bank's net revenue and provisions for Q3 FY25
HDFC Bank's net revenue for the quarter ending December 31, 2024, grew by 6.3% to ₹42,110 crore. This is up from ₹39,610 crore recorded in the same quarter of the previous year.
However, the bank's provisions and contingencies for the period stood at ₹3,150 crore, down from ₹4,220 crore reported in Q3FY24.
Business expansion
HDFC Bank's deposits and advances grow in Q3FY25
HDFC Bank recorded a 15.9% growth in average deposits for the December 2024 quarter at ₹24,52,800 crore.
The bank's advances under management also grew by 7.6% for the same quarter at ₹26,27,600 crore.
Retail loans grew by 10%, commercial and rural banking loans by 11.6%, while corporate and other wholesale loans fell by 10.4%.