More Stories

Informist, Saturday, Apr. 19, 2025

 

Please click here to read all liners published on this story

--Jan-Mar net profit INR 176.16 bln vs INR 165.12 bln year ago 
--Analysts saw HDFC Bank Jan-Mar net profit INR 171.07 bln 
--Jan-Mar total income INR 894.88 bln vs INR 896.39 bln year ago 
--FY25 net profit INR 673.47 bln vs INR 608.12 bln year ago
--FY25 total income INR 3.46 tln vs INR 3.08 tln year ago 
--Jan-Mar net interest income INR 320.7 bln, up 10.3% on year
--Jan-Mar NIM on total assets at 3.54% 
--Gross NPA ratio 1.33% as on Mar 31 vs 1.42% quarter ago 
--Capital adequacy ratio 19.55% as on Mar 31 
--Jan-Mar provisions INR 31.93 bln vs INR 135.12 bln year ago 
--FY25 provisions INR 116.49 bln vs INR 234.92 bln year ago 
--Hold provision of INR 2.88 bln on AIF investment as on Mar 31 
--CASA ratio 34.8% as on Mar 31 
--Jan-Mar cost-to-income ratio at 39.8% 
--To pay INR 22 per share dividend 
--Jan-Mar credit cost at 0.48% vs 0.50% qtr ago 
--Liquidity Coverage Ratio at 119% as on Mar 31 
--Jan-Mar cost of funds at 4.9%, unchanged vs qtr ago 
--Retail gross NPA at 0.8% as on Mar 31, unchanged vs qtr ago 
--Jan-Mar slippages INR 75 bln vs INR 88 bln in Oct-Dec 
--Jan-Mar recoveries, upgrades INR 50 bln vs INR 40 bln Oct-Dec 
--Wrote off loans worth INR 33 bln Jan-Mar vs INR 31 bln Oct-Dec 
 

 

By Kabir Sharma

 

MUMBAI – A sharp fall in provisions helped HDFC Bank report a slight uptick in its bottom line for the quarter ended March, despite total income remaining unchanged from last year. The provisions fell over 76% to INR 31.93 billion in Jan-Mar as the bank did not make any floating provisions against INR 109.00 billion made in FY24.

 

The net profit of the bank rose 6.7% on year to INR 176.16 billion in the quarter ended March. The net profit for the financial year ended March was INR 673.47 billion, up 10.8% from the previous year. The bottom line was slightly higher than analysts' expectations of INR 171.07 billion. The board of the bank has approved a dividend of INR 22 per share. 

 

Despite the net interest income of the bank rising 10.3% on year to INR 320.7 billion, the total income remained largely unchanged on year at INR 894.88 billion. This was due to 33.8?ll in non-interest income, or other income. The non-interest income for Jan-Mar was INR 120.3 billion. The fall in net trading and mark-to-market income was the main reason for fall in other income.

 

Supported by a rise in net interest income, net interest margin of the largest private sector lender rose to 3.5% in Jan-Mar from 3.4% in Oct-Dec. For the full year, the bank's total income rose 12.5% to INR 3.46 trillion. Provisions for FY25 were at INR 116.49 billion, more than 50% lower than last year.

 

In terms of expenses, a tax expense of INR 57.28 billion weighed on the bank's bottom line. In the same quarter year ago, there was a tax reversal of INR 7.5 billion. The operating expenses of the bank fell 2.3% on year to INR 175.57 billion in Jan-Mar. Employee cost was also down 11.8% on year to INR 611.6 billion for the quarter.

 

Cost to income ratio of the bank remained unchanged throughout 2024-25 (Apr-Mar) at 1.9%. The bank continues to hold provisions worth INR 2.88 billion for alternate investment funds. Cost of funds also remained stable throughout the last financial year at 4.9%.

 

The asset quality of the bank improved sequentially. The gross non-performing loans ratio fell to 1.33% as on Mar. 31 from 1.42% a quarter ago. However, it was up 9 basis points from 1.24% a year ago. The net non-performing asset ratio rose on-year to 0.43% from 0.33%. Sequentially, the net non-performing loan ratio improved slightly from 0.46%. Retail gross non-performing loans were unchanged at 0.8% from the previous quarter. The sequential improvement in asset quality led to fall in credit cost to 0.48% in Jan-Mar from 0.50% a quarter ago.

 

Slippages of the bank declined to INR 75 billion in Jan-Mar from INR 88 billion in Oct-Dec. Recoveries and upgrades of the bank also improved to INR 50 billion in the March quarter from INR 40 billion a quarter ago. The bank wrote-off loans worth INR 33 billion in Jan-Mar compared with INR 31 billion in the previous quarter.

 

Liquidity coverage ratio of the bank moderated to 119% at the end of March from 125% a quarter ago. The capital adequacy ratio of the bank was 19.6% as on Mar. 31, with tier-1 capital at 17.7%. On Thursday, shares of the bank ended 1.5% higher at INR 1906.70 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.