India's largest private lender HDFC Bank (NSE:HDBK) on Wednesday reported a 2.2 per cent rise in its net profit for Q3 this fiscal, as its gross non-performing assets (NPA) ratio rose during the quarter.
For the December quarter, the bank's profit stood at Rs 16,736 crore, compared to Rs 16,373 crore in the same period last year.
The net interest income, the core income for the bank, rose almost 8 per cent, year-on-year, to Rs 30,650 crore. On a net interest margin basis, it was 3.43 per cent for the bank and 3.62 per cent on an interest-earning asset basis.
In the quarter ended September, the corresponding numbers were at 3.46 per cent and 3.65 per cent.
The bank also received a growth of 7.6 per cent in interest income. HDFC Bank earned an interest of Rs 76,007 crore in the Q3 FY25 compared with Rs 70,583 crore in the Q3 FY24.
During this time, it paid Rs 45,354 crore as interest for the quarter, which is by 7.7 per cent up from Rs 42,111 crore in the Q3FY24.
However, the private sector bank's asset quality deteriorated, with the gross NPA ratio rising to 1.42 per cent as of December, compared to 1.36 per cent in the previous quarter. The net NPA ratio rose to 0.46 per cent from 0.41 per cent in the prior quarter.
The filing said, "Earnings per share for the quarter ended December 31, 2024 was at Rs 23.1 and book value per share as of December 31, 2024 was at Rs 656.6.
HDFC Bank's operating expenses stood at Rs 17,110 crores, increasing by 7.2 percent from Rs 15,960 crores in the same period last year.
The cost-to-income ratio of the company was 40.6 per cent in Q3. The average deposits also rose in the same quarter by 15.9 per cent at Rs 24,52,800 crore from Rs 21,17,100 crore for the same period last year.
The total balance sheet size in Q3 FY25 was Rs 37,59,000 crore as against Rs 34,92,600 crore as of December 31, 2023.
The bank's shares gained more than 1 per cent, although the profit after tax was a little lower than expected. During intra-day trading on Wednesday, the shares touched a high of Rs 1,659.90 in the stock market.
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