HDFC Bank Q2 Profit Soars 10.8% to ₹18,640 Crore
HDFC Bank has recently announced its financial results for the July-September 2025 quarter, highlighting a significant achievement with a 10.8% increase in net profit, which now stands at ₹18,640 crore. This marks an increase from ₹16,820 crore in the same quarter last year, showcasing the bank's consistent growth trajectory.
The bank's net interest income (NII) also saw a positive shift, rising by 4.8% to reach ₹31,550 crore compared to ₹30,110 crore in the previous year. Such growth in NII indicates the bank's ability to manage its interest earnings effectively, a crucial factor in the banking industry.
One of the key highlights from the report was the bank's gross advances, which rose by 9.9% to ₹27,69,200 crore. This increase reflects a strong demand for loans, particularly in the retail sector, where loans grew by 7.4%. Small and mid-market enterprises saw a notable growth of 17%, while corporate and wholesale loans experienced a 6.4% increase.
In terms of asset quality, HDFC Bank reported a decrease in gross non-performing assets (NPAs) to 1.24% of gross advances, down from 1.36% last year. The net non-performing assets were at 0.42% of net advances, indicating the bank's effective management of credit risks.
Furthermore, the bank's provisions and contingencies stood at ₹3,500 crore, with a total credit cost ratio of 0.51% for the quarter. This prudent approach in provisioning reflects the bank's risk management strategies in a competitive environment.
HDFC Bank's total capital adequacy ratio (CAR) was reported at 20%, significantly higher than the regulatory requirement of 11.9%. This strong capital position, with a Tier 1 CAR of 17.9% and a Common Equity Tier 1 Capital ratio of 17.5%, suggests that the bank is well-capitalized to support future growth and absorb potential losses.
In conclusion, HDFC Bank's impressive financial performance in Q2 2025 underscores its resilience and strategic management in the Indian banking sector. With a solid growth trajectory and strong asset quality, the bank remains a key player in the industry.
