HDFC Bank’s Q3 Earnings: Mixed Results and Analyst Insights

HDFC Bank reports a 2.2% net profit rise but falls short of expectations. Analysts maintain positive ratings, focusing on deposits and asset quality.

hdfc bank shares in focus post q3 earnings should you buy sell or hold

HDFC Bank shares are in the spotlight following their results for the December quarter. The bank reported a 2.2% increase in standalone net profit, reaching ₹16,736 crore compared to ₹16,373 crore a year ago. This profit was below what experts expected, which was ₹17,233 crore.

The bank’s Net Interest Income (NII) for the third quarter of FY25 went up by 7.7% to ₹30,650 crore, up from ₹28,470 crore in the same period last year. They earned ₹76,007 crore in interest, a 7.6% rise from ₹70,583 crore a year ago. HDFC Bank’s profit margin was reported at 3.43% on total assets.

The bank’s total earnings for the quarter were ₹42,110 crore, which is a 6.3% growth from ₹39,610 crore in the same quarter last year.

In terms of provisions and expenses, HDFC Bank put aside ₹3,150 crore, which is less than the ₹4,220 crore set aside last year.

## Deposits and Advances
HDFC Bank also saw a 15.9% growth in average deposits, reaching ₹24,52,800 crore, compared to ₹21,17,100 crore last year. Their average loans were ₹26,27,600 crore, up 7.6%.

### What Analysts Say:
– Nuvama: Maintained a ‘Buy’ rating with a target price of ₹1,950, praising the bank’s strong deposit growth and low slippage.
– Morgan Stanley: Kept an ‘Overweight’ rating with a target price of ₹1,965, noting solid performance but pointing out seasonal issues in asset quality.
– Motilal Oswal: Set a ‘Buy’ rating with a target of ₹2,050, mentioning slight concerns over asset quality but also expecting better returns in the future.

Disclaimer: The expert views provided are their own and do not reflect the opinions of NiftyStat

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