Daijiworld Media Network – Mumbai

Mumbai, Jul 20: HDFC Bank and ICICI Bank reported robust earnings growth for the quarter ended June 2025, backed by a rise in both interest and non-interest income. However, both private lenders flagged pressure on margins and adopted a cautious stance in specific retail lending segments.

HDFC Bank’s standalone net profit rose 12.2% year-on-year to a record Rs 18,155 cr, up from Rs 16,175 cr last year. The bank also declared a 1:1 bonus issue and an interim dividend of Rs 5 per share. The surge in profits came on the back of a 103.7% rise in other income and reduced tax expenses, despite a fourfold jump in provisions.

Total income rose 18.5% to Rs 99,200 cr, with interest income up 6.1%. Income from investments increased by 20.1%, while earnings from balances with RBI and interbank funds soared 41.7%. HDFC’s advances grew 8% to Rs 27.8 lac cr, and deposits rose 16% to Rs 27.6 lac cr. CFO Srinivasan Vaidyanathan said loan growth is expected to align with the industry in FY26 and accelerate in FY27, led by consumption-driven lending. Retail lending rose 9.6%, with mortgages growing 7%.

ICICI Bank reported a 15.4% increase in standalone net profit to Rs 12,768 cr, up from Rs 11,059 cr in the year-ago period. The bank's operating profit rose 17% to Rs 18,746 cr. Interest income grew 10.1% while other income increased 21.5%. Provisions saw a 36.2% jump to Rs 1,815 cr.

The bank’s advances were up 11.5% at Rs 13.6 lac cr, while deposits grew 12.8% to Rs 16 lac cr. ICICI Bank’s board also approved the Rs 203.5 cr acquisition of ICICI Prudential Pension Funds Management Company, making it a wholly owned subsidiary, pending regulatory approval.

Executive Director Sandeep Batra said the bank has slowed growth in personal loans and credit cards to 1% due to calibrated risk management, though asset quality remains stable.