HDFC Bank Q1 Results: Net profit up 35%, net NPAs nearly double

Q1 Results Today: HDFC Bank sees its standalone net NPAs almost double and its gross NPAs shoot up by 73%.

HDFC Bank Ltd has announced its first quarter earnings for the financial year 2024-25, on July 20.

How was HDFC Bank's financial performance for the first quarter of 2024-25?

HDFC bank saw its standalone net profit grow by 35.33% to ₹16,174.75 crore from ₹11,951.77 crore during the first quarter of the financial year 2023-24. This was an increase of ₹4,222.98 crore.

The interest earned rose by 50.31% to ₹73,033.14 crore from ₹48,586.81 crore during the same quarter of the previous year, an increase of ₹24,446.33 crore.

Income on investments grew by 40.76% or by ₹3,632.58 crore to ₹12,543.82 crore this year from ₹8,911.24 crore last year. This represents how much funds the bank put aside into investments, rather than lending.

Other income grew by 15.58% or by ₹1,438.25 crore from ₹9,229.86 crore during the previous year's quarter to ₹10,668.11 crore this year's quarter.

The bank's total income also increased by 44.77% to ₹83,701.25 crore from ₹57,816.67 crore last year, an increase of ₹25,884.58 crore.

How much were HDFC Bank's expenses?

The bank's operating expenses grew by 18.23% to ₹16,620.61 crore from ₹14,056.91 crore in the first quarter of the financial year 2023-24. This was an increase of ₹2,563.7 crore.

HDFC Bank's total expenditure also increased by 53.2% to ₹59,816.61 crore from ₹39,044.65 crore last year, an increase of ₹20,771.96 crore.

What were HDFC Bank's NPAs like?

The bank's non-performing assets (NPAs), which are also known as bad loans or loans that are unlikely to be recoverable, skyrocketed on a year-to-year basis.

Standalone Gross NPAs shot up by 73.23% to ₹33,025.69 crore from ₹19,064.12 crore earlier. This was an increase of ₹13,961.57 crore.

Standalone Net NPA's on the other hand, nearly doubled, going from ₹4,776.87 crore in the previous year's first quarter to ₹9,508.44 crore in this year's quarter. This is a 99.05% increase, amounting to ₹4,731.57 crore.

How did HDFC Bank's shares perform?

HDFC Bank's shares closed at ₹1607.10 on the Bombay Stock Exchange during the week's last trading session on Friday, June 19. It was a drop of 0.46% or 7.40 points from the previous day.