India’s largest private lender, HDFC Bank on Wednesday reported a 2.2% year-on-year rise in its December quarter net profit to Rs 16,736 crore, compared with Rs 16,373 crore in the same period last year.
The profit, however, was lower than estimates at Rs 17,233 crore. The lender’s net interest income (NII) grew 7.7% to Rs 30,650 crore in Q3FY25 for the quarter ended December 31, 2024, compared with Rs 28,470 crore for the quarter ended December 31, 2023.
Net income in the three months ended December 31 rose 2.3% to Rs 167.4 billion ($1.9 billion) from a year earlier, according to a statement on Wednesday. This compares with the average analyst estimate of Rs 166.57 billion in a Bloomberg survey.
HDFC Bank Posts Profit Growth
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 is shrinking its retail loan portfolio as it seeks to improve its credit-deposit ratio that rose after its merger with Housing Development Finance Corp in 2023.
The bank’s bad loans rose to 1.42% in the December quarter, surpassing analysts’ estimates of 1.37%, while its provisions rose 17% from the previous quarter.
HDFC Bank share price Today
At 11.10 am, shares traded 0.21% higher at ₹1,645.90 on the NSE.
Day’s High: ₹1,654.90
Day’s Low: ₹1,639
Previous Close: ₹1,642.40
Today Open: ₹1,642.40
“The rate of adding branches will be recalibrated,” the lender’s management said during a post-third quarter earnings conference call. In the October-December quarter, HDFC Bank’s branch distribution network stood at 9,143, as against 9,092 branches a quarter ago. It had 8,091 branches in this period, and in the year-ago period, according to an investor presentation. The branch network grew by 0.6 per cent on a quarterly basis, and by 13 per cent on an annual basis.
Disclaimer: The views and recommendations expressed above are those of individual analysts or broking companies, not mine. We advise investors to check with certified experts before making any investment decision.
