• HDFC Bank reported a net profit of Rs 16,820 crore for Q2 FY25, a 5% increase from the previous year.
• The bank's profit after tax grew by 17%, reflecting its strategic financial management.
• HDFC Bank's net interest income stood at Rs 30,114 crore, indicating a healthy expansion in its core lending business.
• The bank's Q2 FY25 results reflect its strong operational performance, robust asset quality, and healthy growth in net interest income and revenues.

HDFC Bank, a leading private sector lender in India, has reported a net profit of Rs 16,820 crore for the second quarter of the fiscal year 2025. This figure represents a 5% increase from the corresponding quarter of the previous year, demonstrating the bank's robust performance amidst a challenging economic environment.

The bank's profit after tax (PAT) for the quarter, adjusted for trading and mark-to-market gains and tax credits from the previous year, grew by an impressive 17% over the quarter ended September 30, 2023. This growth is a testament to the bank's strategic financial management and its ability to navigate complex market dynamics.

A key driver of HDFC Bank's profitability was its net interest income, which stood at Rs 30,114 crore in Q2 FY25, marking a 10% increase from the previous year. This growth in net interest income, which is the difference between the interest income a bank earns from its lending activities and the interest it pays to its depositors, indicates a healthy expansion in the bank's core lending business.

Robust Asset Quality and Revenue Growth

In terms of asset quality, the bank reported a gross non-performing assets (GNPA) ratio of 1.36%, while the net non-performing assets (NNPA) ratio was at 0.41%. These figures reflect the bank's rigorous credit risk management practices and its commitment to maintaining a high-quality loan portfolio.

On the revenue front, HDFC Bank's consolidated net revenue for the quarter ended September 30, 2024, grew by 14.7% to Rs 76,040 crore, up from Rs 66,320 crore for the same quarter last year. This robust revenue growth was driven by a combination of factors, including an increase in net interest income, higher fee income, and strong performance across the bank's diverse business segments.

The bank's net revenue for the quarter grew by 9.2% to Rs 41,600 crore, up from Rs 38,090 crore for the same quarter last year. This growth was primarily driven by an increase in net interest income and robust fee income, reflecting the bank's strong customer franchise and its ability to cross-sell products and services effectively.

Strong Balance Sheet and Loan Growth

Operating expenses for the quarter were Rs 16,890 crore, marking an increase of 9.7% over Rs 15,400 crore during the corresponding quarter of the previous year. This increase in operating expenses was primarily due to investments in technology, expansion of distribution network, and higher business volumes.

The total balance sheet size of HDFC Bank was Rs 36.8 lakh crore in Q2, up from Rs 34.1 lakh crore in the previous quarter. Total deposits stood at Rs 25 lakh crore in Q2, marking an increase of 15.1% from the same quarter last year. This growth in deposits reflects the bank's strong customer franchise and its ability to attract and retain customer deposits.

In terms of loan growth, the bank reported that retail loans grew by 11.3%, commercial and rural banking loans grew by 17.4%, while corporate and other wholesale loans were lower by 12% in the quarter. Other income (non-interest revenue) for the quarter ended September 30 was Rs 11,480 crore, up from Rs 10,710 crore in the corresponding quarter ended September 30, 2023.