HDFC Bank anticipates slower credit growth for FY25, expecting it to lag behind the broader industry. However, the bank plans to align its growth rate with the industry by FY26 and aims to surpass it by FY27, according to Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, during the Q2FY25 earnings call.
Jagdishan also commented on the potential impact of future rate cuts by the Reserve Bank of India (RBI), noting that such moves are unlikely to significantly affect the bank’s net interest margins (NIMs). While there may be minor quarterly fluctuations due to the gradual nature of rate adjustments, the overall NIMs are expected to remain steady.
For Q2FY25, HDFC Bank reported a 5% year-on-year (YoY) increase in net profit, reaching ₹16,821 crore. The bank’s net interest income (NII) also saw a 10% YoY rise to ₹30,114 crore. Gross non-performing assets (GNPA) slightly increased to 1.36%, compared to 1.33% in the previous quarter, while net NPAs rose to 0.41% from 0.39% quarter-on-quarter (QoQ).
In the same quarter, the bank’s total deposits grew by 15.1% YoY, amounting to ₹25 lakh crore, and its gross advances increased by 7% YoY to ₹25.19 lakh crore. Retail loans grew by 11.3%, while commercial and retail banking experienced growth of 17.4%. However, corporate and wholesale loans declined by 12%.
Disclaimer: The information provided in this summary is based on the Q2FY25 earnings call and may contain forward-looking statements regarding HDFC Bank’s anticipated credit growth and net interest margins. Actual results may differ due to various factors, including changes in market conditions, regulatory actions, and economic trends. This summary is for informational purposes only and should not be construed as financial advice or a recommendation to invest. Please consult a financial advisor for personalized guidance.
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