HDFC Bank Ltd. reported Q1 FY25 net profit grew 35.3% to ₹16,174.75 crore from ₹11,951.77 crore in the year earlier period, while net non performing assets (NPAs) almost doubled. The bank had merged with its parent HDFC Ltd. on July 1, 2023.

Total income grew 44.8% to ₹83,701.25 crore from ₹57,816.67 crore in the year-earlier period.

In Q1, the bank’s earned interest rose 50.3% to ₹73,033.14 crore, from ₹48,586.81 crore in the year-earlier period. Provisions and contingencies were ₹2,602.06 crore against ₹2,860.03 crore a year earlier.

Total credit cost ratio was at 0.42%, compared with 0.70% for Q1 FY24.

Total deposits rose 24.4% to ₹23,79,100 croreGross advances rose 52.6% to ₹24,86,900 crore.

The bank said its retail loans doubled, commercial and rural banking loans grew by 23% and corporate and other wholesale loans grew by 18.7%.

Capital Adequacy

The bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was 19.3% on June 30 (18.9%) against a regulatory requirement of 11.7%.

“Gross non-performing assets were 1.33% of gross advances (1.16% excluding NPAs in agriculture) against 1.24% sequentially (1.12% excluding NPAs in agriculture) and 1.41% on a proforma merged basis on June 30, 2023 (1.25% excluding NPAs in agricultural loans),” the lender said.

Net NPAs were 0.39% of advances on June 30. In absolute numbers gross NPAs rose 73.2% to ₹33,025.69 crore from ₹19,064.12 crore in the year-earlier period.  Net NPAs almost doubled to ₹9,508.44 crore, from ₹4,776.87 crore.