HDFC Bank Surges Ahead in Fiscal Profit Race

The ongoing financial year sees HDFC Bank taking the lead in the race for the most profitable company, closely watched by analysts. With a net profit of Rs 44,300 crore during the initial nine months, HDFC Bank edged past State Bank of India (SBI), which secured the second spot with a robust profit of Rs 40,378 crore. Following closely, Indian Oil Corporation (IOC) secured third place with a net profit of Rs 34,781 crore during the same period.

HDFC Bank’s rise to the top can be credited to its strategic merger with mortgage lender HDFC, effective from July 1 last year. This consolidation visibly strengthened the bank’s financial position.

However, SBI faced a setback in the third quarter as its net profit took a hit due to higher provisions for wages and pension liabilities. Allocating Rs 12,000 crore for wage hikes and an additional Rs 7,100 crore for one-off pension liabilities, the bank made total provisions of around Rs 20,000 crore.

In the previous fiscal year (FY23), SBI clinched the title of the most profitable company with a net profit of Rs 50,232 crore, with Reliance Industries and HDFC Bank securing second and third positions respectively.

Despite HDFC Bank’s current lead, experts anticipate SBI to regain the title, especially considering the traditionally strong performance of banks in the fourth quarter, driven by heightened credit demand during this period. The competition among top companies for fiscal supremacy promises to be a captivating narrative in the financial landscape.