HDFC Bank, recently revealed to have had a 5.3 per cent year-on-year (YoY) increase in its net profit for Quarter two Financial Year 2025 (Q2FY25), reaching Rs 16,820 crore. The growth was primarily driven by robust Net Interest Income (NII) and lower provisions. Sequentially, the bank’s net profit rose by 4 per cent, compared to Rs 16,175 crore in Quarter one Financial Year 2025 (Q1FY25).
For Q2FY25, HDFC Bank’s NII stood at Rs 30,110 crore, reflecting a 10 per cent YoY rise, supported by a healthy increase in advances. However, net interest margins (NIM) remained stable at 3.46 per cent, marginally lower than the 3.47 per cent recorded in Q2FY24.
The bank’s provisions increased slightly to Rs 2,700 crore, up from Rs 2,602 crore in Q1FY25, though significantly lower than Rs 3,310 crore in the same quarter last year. Asset quality saw a slight decline, with gross Non-Performing Assets (NPAs) rising to 1.36 per cent from 1.33 per cent in the previous quarter, and net NPAs edging up to 0.41 per cent.
The Bank also reported strong deposit growth, with total deposits rising 15 per cent YoY to Rs 25 trillion. Advances reached Rs 25.19 trillion, representing a 7 per cent YoY increase. Retail loans surged by 11.3 per cent, while commercial and rural banking loans jumped 17.4 per cent. However, corporate and wholesale loans contracted by 12 per cent.
The bank’s credit-to-deposit ratio is currently at 100 per cent, up from the pre-merger levels of 86-87 per cent. Chief Financial Officer Srinivasan Vaidyanathan mentioned that the bank aims to bring this ratio back to pre-merger levels, while also emphasizing a deliberate slowdown in unsecured loan growth to 10 per cent YoY, in contrast to the industry’s 21 per cent growth rate.