HDFC Bank on Saturday reported a 12.17% year-on-year increase in consolidated net profit to ₹19,807 crore for the quarter ended December, supported by steady core income growth despite margin pressure and higher operating costs.
The country’s largest private sector lender had posted a consolidated profit of ₹17,657 crore in the corresponding quarter last year and ₹19,611 crore in the September quarter. On a standalone basis, net profit rose 11.46% year-on-year to ₹18,653.75 crore during the October–December period, according to an exchange filing.
The bank’s net interest income (NII), a key indicator of core lending performance, increased 6.4% to ₹32,600 crore, reflecting continued loan growth amid a competitive interest rate environment. Non-interest income stood at ₹13,250 crore, supported by fees and other ancillary income streams.
HDFC Bank said its net interest margin (NIM) at the overall level came in at 3.35% during the quarter. Margins remained under pressure as the bank continued to navigate a high cost of funds environment following the merger-related balance sheet adjustments and changing deposit dynamics.
Operating expenses saw a notable uptick during the quarter, partly due to the implementation of new labour codes, which resulted in an additional expense impact of around ₹800 crore. The bank indicated that this was a one-time structural adjustment linked to regulatory changes in employee-related costs.
Despite near-term pressures on margins and costs, analysts view HDFC Bank’s performance as resilient, underpinned by its strong franchise, diversified revenue base and robust balance sheet. The lender continues to focus on steady loan growth, granular deposit mobilisation and operational efficiency.
The December-quarter results underline HDFC Bank’s ability to deliver consistent profitability even as the broader banking sector grapples with margin normalisation, rising compliance costs and intense competition for deposits.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.