HDFC Bank has reported a 1.31 per cent decline in its consolidated net profit to Rs 16,258 crore in its first quarter results against Rs 16,475 crore a year ago. However, it reported a 12.2 per cent increase in its standalone net profit to ₹18,155 crore, up from ₹16,175 crore last year.
The bank’s performance was supported by strong growth in other income and stable core operations. Its total income on the standalone basis jumped to Rs 99,200 crore from Rs 83,701 crore in the year-ago period. Other income also surged to over Rs 20,000 crore from just over Rs 10,000 crore.
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It has reported a 5.4 per cent year-on-year rise in its Net Interest Income (NII), reaching ₹31,438 crore, while the net interest margin narrowed to 3.35 per cent from 3.46 per cent in the first quarter of FY25.
HDB stake sale boosts non-interest income
Non-interest income also surged to Rs 21,729.83 crore in the June quarter, largely driven by Rs 9,128 crore in transaction gains from HDB Financial Services’ offer for sale. The bank had offloaded part of its stake in the IPO at Rs 740 per share, reducing its holding in the NBFC to 74.19 per cent from 94.32 per cent.
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On the asset quality front, the bank’s gross non-performing assets (GNPA) ratio rose slightly to 1.4 per cent from 1.33 per cent in the previous quarter, while the net NPA stood at 0.47 per cent, up from 0.43 per cent sequentially.
The bank set aside Rs 14,442 crore in provisions, a sharp jump from Rs 2,602 crore in Q1FY25. This includes Rs 9,000 crore in floating provisions and Rs 1,700 crore in contingent provisions. These are meant to serve as a buffer for future risks.
The total expenditure stood at Rs 63,467 crore against Rs 59,817 crore in the same period of the preceding fiscal, as per an exchange filing
Balance sheet expands to over Rs 44 lakh crore
The bank’s total balance sheet size grew to Rs 44.56 lakh crore as of June 30,
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