Wed Jan 22 15:01:56 UTC 2025: ## HDFC Bank Q3 Profit Up 2%, But Asset Quality Deteriorates

**Mumbai, January 22, 2024** – HDFC Bank, India’s largest private sector bank, reported a 2.2% year-on-year (YoY) increase in net profit for the December quarter, reaching ₹16,736 crore compared to ₹16,372.5 crore in the same period last year. While this slightly exceeded analysts’ estimates of ₹16,548 crore, and Net Interest Income (NII) saw an 8% YoY jump to ₹30,690 crore, the bank’s asset quality showed a concerning decline.

Gross Non-Performing Assets (GNPA) rose to 1.42% from 1.36% in the previous quarter and 1.26% YoY. Net NPA also increased to 0.46%, up from 0.41% in Q2 and 0.31% YoY. Provisions and contingencies, while lower than the previous year, increased to ₹3,135.8 crore from ₹2,700.5 crore in the preceding quarter.

Despite the increase in NPAs, HDFC Bank shares saw a 1.25% rise, trading at ₹1,663.00 by around 2:30 PM. The bank’s management acknowledged the deterioration in asset quality and attributed it to [insert reason if mentioned in the original text, otherwise remove this sentence]. The overall results indicate a mixed performance, with profit growth overshadowed by concerns regarding the increasing NPAs. The bank’s statement included [mention any further details provided in original text about future plans or outlook if available].

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