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HDFC Bank Q3 Results: Net Profit Rises 2.2%, Gross NPA Inches Up, Strong Growth in Interest Income

HDFC Bank Q3 Results for FY25 show a modest 2.2% growth in net profit, despite a slight increase in the gross NPA ratio. The bank reported higher interest income, operating expenses and balance sheet growth, alongside a solid stock market performance.

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Harsh
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HDFC Bank Q3 Results

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HDFC Bank Q3 Results: India’s largest private lender, HDFC Bank, reported a modest 2.2% growth in its Q3 net profit for FY25. However, the quarter witnessed a slight increase in gross non-performing assets (NPA). Here’s a detailed breakdown of the bank’s performance.

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Net Profit and Core Income Performance in HDFC Bank Q3 Results

HDFC Bank’s net profit for Q3 FY25 stood at ₹16,736 crore, up from ₹16,373 crore in the same quarter last year. The net interest income (NII), a key measure of the bank’s earnings, grew 8% year-on-year to ₹30,650 crore.

The core net interest margin (NIM) for the quarter was recorded at 3.43%, with the interest-earning asset margin at 3.62%. These figures were slightly lower than the September quarter's NIM of 3.46% and 3.65%, respectively.

Rising Interest Earned and Operating Expenses

The bank’s interest earned in Q3 FY25 surged by 7.6%, reaching ₹76,007 crore compared to ₹70,583 crore in the same quarter last year. Interest expenses also rose by 7.7%, with ₹45,354 crore paid out during the quarter, up from ₹42,111 crore in Q3 FY24.

Operating expenses increased by 7.2%, totaling ₹17,110 crore. The cost-to-income ratio stood at 40.6%, reflecting efficient operations despite rising expenses.

Gross NPA and Balance Sheet Growth in HDFC Bank Q3 Results

HDFC Bank’s gross NPA ratio climbed to 1.42% in Q3, compared to 1.36% in the previous quarter. The net NPA ratio also rose to 0.46%, up from 0.41% in Q2 FY25.

The bank’s total balance sheet size reached ₹37,59,000 crore as of December 31, 2024, marking a notable growth compared to ₹34,92,600 crore in December 2023. Average deposits also saw a robust 15.9% increase, amounting to ₹24,52,800 crore.

Stock Market Performance and Key Ratios

Despite slightly underwhelming profit growth, HDFC Bank’s shares gained over 1%, hitting an intra-day high of ₹1,659.90 on Wednesday. Earnings per share (EPS) for the quarter stood at ₹23.1, while the book value per share was ₹656.6.

HDFC Bank Quarterly Results
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