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### Eagle’s Eye view: HDFC Bank Q1 FY25 Results Analysis
#### Consolidated Advances & Deposit Growth
- **Total Advances**: ₹24,869 billion (Q1 FY25) vs ₹25,078 billion (Q4 FY24), showing a slight decline.
- **Total Deposits**: ₹23,791 billion (Q1 FY25) vs ₹23,798 billion (Q4 FY24), indicating a marginal decrease
#### Consolidated Income & Profit Growth
- **Net Interest Income**: ₹81546 Cr, a 59% increase YoY.
- **Non-Interest Income**: ₹35450 Cr, a 260% increase YoY all due to merger effect.
- **Total Revenue**: 1.2 Lakh Cr, a 92% increase YoY majorly due to merger.
- **Provisions**: ₹3143 Cr, a 4.5% decrease YoY.
- **Profit After Tax**: ₹16475 Cr, a 33.2% increase YoY
#### Consolidated EPS Growth
- **EPS**: ₹21.7 for Q1 FY25 v/s ₹22.15 for Q1 FY24 which is (-2%) due to merger effect. Hence Profit growth of 33.2% was nullified due to increased enquiry taking EPS growth just to Negative 2%.
#### Consolidated Profit Margin Change
- **Profit Margin**: Profit margin decreased from 20.3% last year Q1_FY_24 to just 14.1% which is 620 basis points down, while just 10 basis points decreased from Q4_fy24.
#### Gross NPA% Change
- **Gross NPA**:
- Q1 FY25: 1.33%
- Q4 FY24: 1.24%
- Q1 FY24: 1.17%
- An increase in Gross NPA percentage, indicating a slight rise in non-performing assets.
#### Consolidated Subsidiaries Sales & Profit Growth
- **HDB Financial Services**:
- Loan book: ₹956 billion, up by 30% YoY.
- Net profit: ₹5.8 billion, up by 3% YoY.
- **HDFC Life Insurance**:
- Net Premium Income: ₹125 billion, up by 8% YoY.
- Net profit: ₹4.8 billion, up by 15% YoY.
- **HDFC AMC**:
- Total income: ₹9.5 billion, grew 29% YoY.
- Net profit: ₹6.0 billion, grew 26% YoY.
- **HDFC ERGO General Insurance**:
- Gross written premium: ₹38.7 billion, up by 10% YoY.
- Net profit: ₹1.3 billion, down from the previous year.
- **HDFC Securities**:
- Net revenue: ₹8.2 billion, up by 65% YoY.
- Net profit: ₹2.9 billion, up by 55% YoY.
### About HDFC Bank
HDFC Bank is one of India's leading private sector banks, offering a comprehensive range of financial products and services. The bank has a strong focus on retail banking, corporate banking, and treasury operations. The recent merger with HDFC Limited has significantly enhanced its scale and market presence but at investor level yet the effect is flat as earnings per share is negative growth due to increased equity.
### Industry Overview
The Indian banking sector has been experiencing robust growth, driven by increasing demand for financial services, digital transformation, and government initiatives promoting financial inclusion. However, the sector also faces challenges such as rising NPAs, regulatory changes, and competition from fintech companies.
### Future Outlook
HDFC Bank is well-positioned for future growth, supported by:
- Strong capital adequacy (19.3% CAR).
- Healthy asset quality management.
- Continuous digital innovation and customer-centric approach.
- Expanding retail and corporate banking segments.
### Important Highlights for Investors
- Strong growth in net interest income and profit.
- Controlled increase in operating expenses.
- Slight increase in Gross NPA percentage, indicating a need for cautious asset quality management.
- Robust performance of subsidiaries, contributing significantly to consolidated profits.
- Strategic focus on digital transformation and customer engagement.
