HDFC Bank has reported a 6.03% increase in net profit for the quarter ending September 2024, reaching Rs 17,825.91 crore, compared to Rs 16,811.41 crore in the same quarter last year.

The bank's standalone net profit also saw a 5.29% rise to Rs 16,820.97 crore for Q2 FY25, compared to Rs 15,976.11 crore in the previous year.

Net interest income (NII) for HDFC Bank grew by 10% year-on-year to Rs 30,110 crore, with the net interest margin remaining stable at 3.46%.

The operating profit margin (OPM) for September 2024 was reported at 56.67%, a significant increase from 30.43% in September 2023.

Sales for the same quarter rose by 25.06%, totaling Rs 4019.34 crore, compared to Rs 3213.84 crore in the previous year.

Overall, sales for the company increased by 12.87% to Rs 4214.45 crore in the quarter ended September 2024, up from Rs 3733.78 crore in the same quarter last year.

Loans grew by 1.3% quarter-on-quarter and 7% year-on-year, although this growth was moderated by a decline in corporate lending.

These financial results reflect HDFC Bank's continued growth and strong performance in the banking sector.

HDFC Bank's liquidity coverage ratio (LCR) rose to 128, surpassing the historical target range of 110-120, indicating strong liquidity management.

Despite these positive results, the bank faces competitive pressure on pricing from legacy banks offering lower rates, which could impact profitability.

Analysts at Bernstein maintained an 'Outperform' rating for HDFC Bank, with a target price of Rs 2,100, highlighting the bank's resilience amid sector challenges.

The bank's market capitalization stands at $156.87 billion USD, with a P/E ratio of 19.22, suggesting it is trading at a high valuation relative to its near-term earnings growth potential.