HDFC Bank's NPAs value FY 2017-2024

In financial year 2024, the value of gross non-performing assets (NPA) at HDFC Bank Limited across India amounted to 311 billion Indian rupees. This was a significant increase in the NPAs filed by the bank compared to the previous year when it amounted to around 180 billion rupees. Countrywide, the Industrial Development Bank of India (IDBI) had the highest non-performing asset value across all private commercial banks in 2021, followed by the Industrial Credit and Investment Corporation of India Bank (ICICI bank). In total, the gross non-performing asset value of Indian private banks amounted for over two trillion Indian rupees that year.

Why are NPAs also called “bad assets”?

Non-performing assets are advances or loans on which the debtor missed to settle principal or interest payments to the bank or is going to pay late. These assets then must be recorded on a bank’s balance sheet. NPAs reduce the cash flow of the lender and can, therefore, become a significant weight for a bank. After reaching a height in financial year 2018, the NPA-ratio decreased in the following years. Due to the economic crisis caused by the coronavirus (COVID-19) pandemic, estimations by the Reserve Bank of India predict a strong increase of non-performing assets in the course of 2021. One bank that already got in trouble because of its high share of NPAs was the Yes Bank. On behalf of the Reserve Bank of India it was rescued by the State Bank of India, HDFC Bank, and other banks in April 2020.

India’s largest private bank

Mumbai-based HDFC Bank is India’s largest private bank in terms of total assets. It was founded in 1994 as a subsidiary of the Housing Development Finance Corporation and was one of the first new private banks after the market liberalizations starting in 1991. The bank’s network comprises nearly 5,500 branch offices and nearly 15,000 ATMs across India. Other subsidiaries of the HDFC Group are the housing finance company GRUH or the general insurer HDFC ERGO.