HDFC Bank Q1 profit jumps 35% to Rs16,175cr

NII surges 26% to 29,837 crore on robust advances growth

MUMBAI: Benefiting from a comfortable net interest income (NII) and reduced provisions, HDFC Bank , the country’s largest private sector lender, reported a 35 per cent year-on-year surge in net profit to Rs 16,175 crore for the first quarter of the FY25 fiscal year.

This exceeded analysts’ expectations of Rs 15,652 crore.

However, profit declined by 2 per cent from Rs 16,511.85 crore in Q4FY24 due to slower income growth and higher tax expenses.

In the same period last year (Q1FY24), the lender had reported a net profit of Rs 11,952 crore. The figures for Q1FY25 include the operations of the erstwhile HDFC Ltd., which merged with the bank on July 1, 2023.

HDFC reported an NII of Rs 29,837 crore in Q1FY25, marking a 26.4 per cent increase from the same period last year, supported by robust advances growth. Sequentially, NII rose by 2.6 per cent from Q4FY24. The lender’s net interest margin improved to 3.47 per cent in Q1FY25, up from 3.44% in Q4FY24.

Provisions by the lender decreased by 9 per cent year-on-year to Rs 2,602 crore in Q1FY25. Sequentially, provisions declined significantly, more than fivefold, from Rs 13,511 crore in Q4FY24.