The following is a summary of the HDFC Bank Ltd (HDB) Q2 2025 Earnings Conference Call Transcript:
Financial Performance:
HDFC Bank reported a profit after tax of INR 16,800 crores, an adjusted growth of about 17% year-on-year.
Average assets under management grew by about 10.2% year-on-year.
Net Interest Margin (NIM) was stable within the range of 3.45% to 3.5%, reported at 3.46%.Gross Non-Performing Assets (NPA) remained stable at about 1.4%.
Deposit growth was robust at around 15% year-on-year, with the retail branch contributing substantially (84% of total deposits).
Business Progress:
HDFC Bank focuses on accelerating the normalization of the Loan to Deposit Ratio (LDR), moving towards more sustainable levels more quickly than previously anticipated.
The bank is continuing its branch expansion to enhance customer reach and density.
There's a heightened focus on priority sector lending, particularly targeting small and marginal farmers and weaker sections, to meet organic growth targets.
Opportunities:
HDFC Bank sees an opportunity to capitalize on stable asset quality and regulatory environment to position itself for potential market shifts in credit demand over the next 2-3 years.
Risks:
Continued elevation in deposit rates poses a risk by potentially pressurizing net interest margins if the rate environment remains aggressive.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
