The largest private sector lender, HDFC Bank, on Saturday reported a Street-beating numbers. The bank reported a 6.7% year-on-year growth in standalone net profit at Rs 17,616 crore for the fourth quarter of financial year 2024-25.
On a sequential basis net profit rose 5.3%. The better-than-expected numbers are driven by better asset quality, and a drop in provisions and contingencies from a high Rs 13,510 crore in March 2024 to a low to Rs 3,190 crore in the reporting quarter.
Gross non-performing assets (NPAs) shrunk to 1.33% in March 2025, from 1.42% in December 2024. However, it expanded from 1.24% a year ago. Similarly, net NPAs stood at 0.43% compared to 0.46% in a quarter ago period and 0.33% the previous year.
In absolute terms, gross NPAs fell to Rs 35,222.64 crore compared to Rs 36,018.58 crore in December 2024 and from RS 31,173.32 crore in March 2024, Srinivasan Vaidyanathan, chief financial officer of the bank, told reporters on a concall on Saturday.
He, however, refused to offer any outlook on loan, deposit or margin growth, saying they will grow with the industry or marginally higher depending on how the market demands.
But he was hopeful of credit-deposit ratio reaching the premerger level of over 87% from the next fiscal and reach the premerger level by the end of the current fiscal.
Even though the asset quality of the bank has deteriorated, provisions and contingencies for the reporting quarter plunged to Rs 3,190 crore from Rs 13,510 crore in March 2024.
The key net interest income grew 10.3% to Rs 32,070 crore from Rs 29,080 crore and from Rs 30,650 crore in the December quarter.
Net interest margin was at 3.54% of total assets and at 3.73% based on interest earning assets. Excluding Rs 700 crore of interest on income tax refund, core net interest margin was at 3.46% of total assets, and 3.65% based on interest earning assets.
Other income or non-interest/fee revenue for the quarter stood at Rs 12,030 crore of which fees & commissions were Rs 8,530 crore, foreign exchange & derivatives revenue were of Rs 1,440 crore, net trading and mark to market gain were of Rs 390 crore and miscellaneous income, including recoveries and dividend of Rs 1,670 crore. HDFC Bank has said the board has recommended a dividend of Rs 22/share of face value of Rs 1 each for the financial year 2025 and the record date for the same has been fixed at 27 June 27.