HDFC Bank’s Big Profit Jump in First Quarter of 2025
HDFC Bank, a major banking company in India, reported a standalone net profit of Rs 16,175 crore for the first quarter of the financial year 2025. This is a 35.3% increase compared to the same period last year, where the profit was Rs 11,952 crore.
However, the net profit for this quarter is 2% lower than the Rs 16,512 crore reported in the fourth quarter of the financial year 2024.
Net Interest Income
The bank’s net interest income (NII), which is the difference between the revenue from interest-bearing assets and the expenses for interest-bearing liabilities, rose by 2.6% quarter-on-quarter to Rs 29,837 crore. In the March period, the NII was Rs 29,078 crore.
Non-Performing Assets
The net non-performing assets (NPA) of the bank increased by 17.5% sequentially, standing at Rs 9,508.4 crore in the first quarter of FY 2025, compared to Rs 8,091.7 crore in the fourth quarter of the previous year. The gross NPA also rose by 6% quarter-on-quarter to Rs 33,026 crore in the June quarter, compared to Rs 31,173 crore in the March quarter of FY 2024.
Stock Performance
In the last trading session on Friday, HDFC Bank’s stocks ended 0.46% lower at Rs 1,607 apiece on the National Stock Exchange (NSE). Over the past five trading sessions, the bank’s stocks have declined by around 1.4%. However, they have performed well over the last six months, rising by 12.45%.
Doubts Revealed
HDFC Bank -: HDFC Bank is one of the largest private banks in India. It provides various financial services like savings accounts, loans, and credit cards.
Standalone net profit -: Standalone net profit is the profit a company makes from its own operations, without including profits from its subsidiaries or other businesses.
Rs 16,175 crore -: Rs 16,175 crore means 16,175 times 1 crore rupees. One crore is equal to 10 million rupees.
First quarter of FY 2025 -: The first quarter of FY 2025 refers to the first three months of the financial year 2025, which in India is from April to June 2024.
35.3% increase -: A 35.3% increase means that the profit is 35.3% higher than it was in the same period last year.
2% drop -: A 2% drop means that the profit is 2% less than it was in the previous quarter.
Net interest income -: Net interest income is the difference between the interest a bank earns from loans and the interest it pays to depositors.
Net non-performing assets -: Net non-performing assets are loans that borrowers are not repaying on time, and the bank might not get back the money.
NSE -: NSE stands for National Stock Exchange, which is a place where people can buy and sell shares of companies in India.
Stocks ended 0.46% lower -: This means the price of HDFC Bank’s shares decreased by 0.46% at the end of the trading day.
Risen 12.45% over the past six months -: This means the price of HDFC Bank’s shares has increased by 12.45% over the last six months.