HDFC Bank (HDFCBANK) Q1 24/25 earnings summary

Executive summary

• Management emphasized long-term stability and profitable growth post-merger, with a focus on quality over rapid expansion and letting go of low-margin business.

• Q1 FY25 saw strong growth in average deposits (up 4.6% QoQ) and advances (up 0.8% QoQ), with stable asset quality and robust profitability.

• Profit after tax reached ₹162 bn, with a return on assets of 1.9% and return on equity of 15.0%.

• The HDFC Limited merger, effective July 1, 2023, impacts comparability of historical data.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on July 20, 2024.

Financial highlights

• Standalone net profit for Q1 FY25 was ₹16,174.75 crore, up from ₹11,951.77 crore in Q1 FY24; consolidated net profit was ₹16,474.85 crore, up from ₹12,403.25 crore.

• Standalone net interest income grew 2.6% QoQ and 26.4% YoY to ₹298.4 bn; net revenue at ₹405.1 bn, up 23.4% YoY.

• Gross NPA at 1.33%, net NPA at 0.3%-0.39%; credit cost at 42 bps.

• Capital adequacy ratio at 19.3%-19.33%, CET1 at 16.8%.

• Cost-to-income ratio at 41.0%; net interest margin at 3.47%.

Outlook and guidance

• Management refrained from explicit forward guidance, focusing on medium- to long-term objectives and franchise expansion.

• The transition to new RBI investment portfolio norms from April 1, 2024, impacts comparability of investment income and profit figures.

• Cost-to-income ratio is expected to trend downward over the medium to long term, with FY25 being a key period for progress.

• Forward-looking statements caution on macroeconomic, regulatory, and geopolitical risks.