HDFC Bank Q3 Results: India's Largest Bank Earns Profit Of Rs 16,736 Crore, NII Rises By 8% YoY

The Indian stock market is currently experiencing a notable upswing. Despite opening positively, the market corrected from higher levels but has since shown a robust recovery. Amid this volatility, certain stocks are gaining attention, particularly HDFC Bank. As the largest private bank in the country, its stock surged after announcing its results on Wednesday, reaching a high of ₹1669 during trading due to better-than-expected outcomes.

HDFC Bank's recent financial results have drawn significant interest. The bank reported a net profit of ₹16,736 crore for the October to December quarter, marking a 2% increase from ₹16,372 crore in the same period last year. Additionally, net interest income (NII) rose by 8% year-on-year to ₹30,653 crore compared to ₹28,471 crore previously.

In its latest update to the market, HDFC Bank highlighted concerns regarding non-performing assets. During the December quarter, gross non-performing assets (GNPA) increased to ₹36,019 crore, a 16% rise from ₹31,012 crore in the same period last year. The gross NPA ratio also climbed by 18 basis points to 1.42%, up from 1.26% last year.

Net non-performing assets (NPA) have also seen a significant rise. On an annual basis, net NPA increased by 51%, reaching ₹11,588 crore. The net NPA ratio rose by 15 basis points to 0.46%, compared to 0.31% in the previous year.

HDFC Bank reported a reduction in provisions for the December quarter. Provisions decreased by 25% year-on-year to ₹3,154 crore from ₹4,217 crore. As of December 31, 2024, deposits stood at ₹25.6 lakh crore, reflecting a 15.8% increase compared to the previous year. Gross advances also grew by 3%, reaching ₹25.4 lakh crore.

Stock Market Reaction

Following the announcement of its results, HDFC Bank's stock saw an increase on the BSE. Currently trading at ₹1663, it has risen nearly 1.5%. However, it remains below its 52-week high of ₹1880 and above its low of ₹1363. The bank's total market capitalisation on the exchange is ₹12.72 lakh crore.

Despite recent gains, HDFC Bank's stock performance has been relatively slow over both short and long terms. Over the past year, it has only achieved a modest gain of 12%. This reflects broader market trends and investor sentiment towards banking stocks amidst economic uncertainties.