Skip to main content

HDFC Bank's Q2 FY25 Result: What is positive and negative?

 HDFC Bank's Q2 FY25 results were mixed, with some positive and negative aspects.

Positive Highlights:
 * Net profit: The bank's standalone net profit increased by 5.3% YoY to ₹16,821 crore, beating market expectations.
 * Net interest income (NII): NII grew by 10% YoY to ₹30,110 crore, indicating strong growth in core lending business.
 * Asset quality: While gross non-performing assets (GNPA) rose slightly to 1.36% from 1.33% in the previous quarter, net NPAs remained relatively stable at 0.41%.
 * Deposits: Total deposits grew by 15.1% YoY to ₹25,00,100 crore, with CASA deposits comprising 35.3% of the total.
 * Advances: Gross advances grew by 7% YoY to ₹25,19,000 crore, with retail loans growing at a faster pace than corporate loans.
 * Other income: Other income (non-interest revenue) increased by 7% YoY to ₹11,480 crore, driven by growth in fees and commissions.

Negative Aspects:
 * Margin pressure: The bank's core net interest margin (NIM) declined slightly to 3.46% on total assets and 3.65% on interest-earning assets, due to higher funding costs.
 * Asset quality concerns: While net NPAs remained stable, the rise in gross NPAs is a concern, particularly in the context of a challenging economic environment.
 * Growth in corporate loans: The slowdown in corporate loan growth is a negative factor, as it represents a significant portion of the bank's loan portfolio.

Overall, HDFC Bank's Q2 results were mixed. The bank's strong core business performance and asset quality were positive factors, but the decline in NIM and concerns about asset quality in the corporate segment were negative. Investors will be watching closely to see how the bank manages these challenges in the coming quarters.

Disclaimer: These are only suggestive technical rules that have been found to work well over time in the market. These are not any trading or investing recommendations. We suggest you to take advice from certified experts for trading and investing. Neither PickMyStox nor any of its associates are responsible for any trading or investing loss.

Topics:

Comments

Post a Comment

Popular Tutorials

How was Tata Consultancy Services (TCS) Q4 results for the Fiscal Year 2024-2025?

Tata Consultancy Services (TCS) announced its Q4 results for the fiscal year 2024-2025 today, April 10, 2025. Here are the key highlights:   Financial Performance: Revenue: ₹64,479 crore, up 5.29% year-on-year (YoY) from ₹61,237 crore in Q4 FY24. This represents a 0.79% increase compared to the previous quarter (Q3 FY25 revenue of ₹63,973 crore). Net Profit: ₹12,224 crore, a decrease of 1.69% YoY compared to ₹12,434 crore in Q4 FY24. However, this is a 1.2% increase from the net profit of ₹12,380 crore in Q3 FY25.   EBIT: ₹15,601 crore, a decrease of 0.36% YoY compared to ₹15,657 crore in Q4 FY24. Margin: 24.19%, down 27 basis points (bps) YoY from 24.47%.   Dividend: TCS declared a final dividend of ₹30 per equity share. Key Points and Context: The results are announced as the IT sector faces a trend of subdued growth. Analysts had anticipated flat revenue growth, stable deal wins, and a slight increase in net profit.   Focus will be on the manag...
Post a Comment
Read more

Reliance Q1 Result: What is Good, Bad and Ugly?

Reliance Industries' Q1 results were a mixed bag, with positive aspects in revenue growth countered by a decline in net profit. The Good  * Revenue grew 12% year-on-year, driven by higher realizations in the oil-to-chemical (O2C) business.  * Reliance Retail, the company's retail arm, saw strong growth in both revenue and profit, indicating continued momentum in the segment.  * Jio, Reliance's telecom arm, also reported a marginal increase in profit quarter-on-quarter. The Bad  * Net profit fell 5.4% year-on-year, primarily due to rising input costs. This decline disappointed some investors who had anticipated higher profits.  * Jio's profit growth fell short of some analysts' expectations. The Ugly  * EBITDA margin narrowed by 1.5 percentage points year-on-year, indicating pressure on profitability. Overall Reliance's Q1 results paint a mixed picture. While revenue growth is a positive sign, the decline in net profit and margin compression rais...
Post a Comment
Read more

Grasim Industries Q2 FY25: What is Positive and Negative?

Grasim Industries Q2 FY25: A Mixed Bag of Results Grasim Industries, the flagship company of the Aditya Birla Group, recently announced its financial results for the second quarter of the fiscal year 2024-25 (Q2 FY25). The results presented a mixed picture, with some segments performing well while others faced challenges.   Positive Highlights Revenue Growth: The company's revenue from operations increased by 11% year-on-year (YoY) to Rs 33,562.85 crore. This growth was primarily driven by the strong performance of the financial services, cellulosic staple fiber, and specialty chemicals businesses.   Diversification Benefits: Grasim's diversified business model, encompassing various sectors such as chemicals, cement, financial services, and textiles, helped mitigate the impact of headwinds in certain segments. Strategic Investments: The company's investments in renewable energy and building materials businesses are expected to yield long-term benefits. Negative A...
Post a Comment
Read more