HDFC Bank reports a 5% increase in net profit for the quarter, supported by lower provisions. At the same time, the bank’s asset quality worsens compared with the preceding quarter. Gross non-performing assets (GNPA) rise to 1.17% from 1.15%, indicating an increase in stressed loans. Net non-performing assets (NNPA) also increase to 0.41% from 0.38%, reflecting higher credit stress after accounting for provisions.
The results show a mixed picture: earnings improve due to reduced provisioning costs, while indicators of loan performance deteriorate modestly quarter-on-quarter. The reported movement in GNPA and NNPA suggests the bank faces slightly higher risk of defaults than in the prior quarter, even as profitability benefits from provision trends. Overall, the bank’s quarterly update highlights the trade-off between cost of risk and asset quality metrics.
