HDFC Bank Q3 Profit Soars 12% to ₹19,807 Crore: Non-Interest Income Fuels Growth

Mumbai: HDFC Bank posted a solid performance in the October–December quarter, reporting a 12.17 percent jump in consolidated net profit to Rs 19,807 crore. This compares with Rs 17,657 crore in the same quarter last year. Profit was also slightly higher than Rs 19,611 crore reported in the September quarter. On a standalone basis, the country’s largest private sector lender reported a net profit of Rs 18,653.75 crore, up 11.46 percent year-on-year. Non-interest income boosts earnings The bank’s performance was supported by healthy growth in non-interest income. Other income rose by over 15 percent to Rs 13,254 crore during the quarter, playing a key role in driving profit growth. Core net interest income (NII) increased by a modest 6.4% to Rs 32,600 crore. Net interest margin stood at 3.35 percent, while advances grew 11.9 percent during the quarter. Asset quality improves, provisions fall HDFC Bank’s asset quality showed improvement. Gross non-performing assets (NPAs) declined to 1.24 percent from 1.58 percent a year ago. The bank said NPAs would be below 1% if seasonal stress in agricultural loans is excluded. Provisions fell to Rs 2,838 crore from Rs 3,154 crore last year, supporting the bottom line. Loan growth trends and cautious approach Retail loans grew 6.9 percent, while small and mid-market enterprise loans rose sharply by 17.2 percent. Wholesale advances increased 10.3 percent. The bank reduced exposure to two-wheeler loans and remained cautious on auto and agriculture lending. Branch expansion and workforce update HDFC Bank added over 500 branches in the last 12 months, taking the total to more than 9,616. Each branch contributes around Rs 306 crore in deposits, the highest in the industry. Employee count fell by nearly 5,000 to 2.15 lakh. Capital position remains strong The bank’s total capital adequacy ratio stood at 19.9 percent, with Tier-I capital at 17.8 percent, reflecting a comfortable capital position.