HDFC Bank Q2 Profit Soars by 10.8%
HDFC Bank has recently reported its financial results for the second quarter of 2025, showcasing impressive growth. The bank recorded a net profit of ₹18,640 crore, marking a remarkable increase of 10.8% compared to ₹16,820 crore in the same quarter last year. This encouraging performance highlights the bank's resilience and adaptability in a competitive banking landscape.
One of the key factors contributing to this profit growth is the bank's net interest income (NII), which increased by 4.8% to ₹31,550 crore in the reporting quarter. This growth signifies that the bank is effectively managing its interest earnings while controlling expenses. The net interest margin, a crucial indicator of profitability, stood at 3.27% on total assets.
The bank's focus on retail lending and small and mid-sized enterprises is evident in its substantial growth in gross advances, which reached ₹27,69,200 crore, reflecting an increase of 9.9%. Retail loans surged by 7.4%, while small and mid-market enterprise loans saw a significant rise of 17%. Corporate and wholesale loans also experienced growth of 6.4%, highlighting the bank's diversified lending portfolio.
Despite the growth, HDFC Bank maintained a prudent approach to risk management. The gross non-performing assets (NPAs) as a percentage of gross advances decreased to 1.24% from 1.36% a year ago, indicating improved asset quality. The net NPAs stood at 0.42%, demonstrating the bank's commitment to minimizing defaults.
Furthermore, HDFC Bank's total capital adequacy ratio (CAR) remained robust at 20%, which is significantly higher than the regulatory requirement of 11.9%. This indicates that the bank is well-capitalized and has the necessary buffers to absorb potential losses. The Tier 1 CAR was reported at 17.9%, with a Common Equity Tier 1 Capital ratio of 17.5%.
In conclusion, HDFC Bank's Q2 performance reflects its strong financial health and robust growth strategy. With increasing profits, a diversified loan portfolio, and a solid capital base, the bank is well-positioned to continue thriving in the competitive Indian banking sector.
