India’s largest private bank, HDFC Bank, declared its financial results for the July-September which is quarter of fiscal year 2024-25.

These are the key points of its financial results:

1. Earnings:-

Profit:  Same Last year, the bank’s standlone net profit was ₹15,976 crore, and this year ,it increased by 5.3% and now  reaching ₹16,821 crore.

Total Income: Last year, it’s  total income was ₹78,406 crore and this year it’s  total income went up to ₹85,500 crore .Overall,this shows bank earned more money than last year.

2. Interest Income and Margins:-

Net Interest Income (NII): This is the difference between what the bank earns in interest from loans and what it pays on deposits. NII grew by 10% means rising to ₹30,110 crore from ₹27,390 crore in the same quarter last year. (July – September).

Net Interest Margin (NIM): This  measures percentage that shows how profitable the bank’s loans are. On interest earning assets the NIM was 3.65% and 3.46% on the total assets , which is almost the same as the previous quarter.

3. Loans and Deposits

Loans: The bank’s total loans increased by 7% year-on-year, reaching ₹25.19 lakh crore.Where, Retail loans (loans for home and personal loans) raised by 11.3%, and commercial and rural banking loans raised by 17.4%. Whereas, corporate loans ( for loans to big businesses) fell by 12%.

Deposits: The bank’s total deposit grew by 15.1 percent and reaching ₹25,00,100 crore as Current account deposits were₹2,75,400 and saving account deposits were ₹6,08,100 crore.

The credit-deposit ratio: It compares that how much the bank takes in  to how much it lends out through deposits, it was 99.8%, just under 100% for the first time since the HDFC merger.

4. Balance Sheet and Capital:

Total Assets: The bank’s balance sheet was 34,16,300 crore last year and this year it reached ₹36,88,100 crore.

Capital Adequacy Ratio (CAR): The CAR, which measures the bank’s financial strength, stood at 19.8%, higher than the regulatory requirement of 11.7%. The Tier 1 CAR was 17.8%, while the Common Equity Tier 1 Capital ratio was 17.3%.

5. HDFC Merger Impact :-

HDFC Bank added a large volume of loans to its portfolio but a smaller amount of deposits, putting it under pressure for increasing its step at which , it raises deposits and slower the growth loan in current quarters. As we have seen, this quarter results shows the first time year on year(YoY) which are comparable after HDFC Bank completed its merger with its holding company , which is Housing Development Finance Cooperation (HDFC) in July 2023.

6. Asset Quality and Expenses:-

Operating Expenses:The bank’s costs were ₹15,400 crore last year and this year , went up by 9.7% and reaching ₹16,890 crore.

Provisions: The bank set aside       ₹2,900 crore in the same quarter last year and  ₹2,700 crore  set aside to cover potential loan losses this year , which is lower than the last year.

Non-Performing Assets (NPAs):   As Gross NPAs rised to 1.36% of total loans from 1.33% in the previous quarter. This shows the bank’s bad loans which is NPAs have increased slightly.

In conclusion: HDFC Bank, Private Bank, showed larger profit in income , loans, and deposits in the quarter month (July-Sep)2024. HDFC bank remains in a strong financial position, even after, challenges brought by its merger which is holding companies with HDFC.