Strong Performance for India’s Largest Private Sector Lender in Q4 FY25
HDFC Bank has reported a strong performance in its fourth-quarter results for FY25, with a 6.7% year-on-year increase in standalone net profit, which stood at Rs 17,616 crore. This exceeded analysts’ expectations, who had forecast a net profit of Rs 17,072 crore, according to a Moneycontrol poll. On a sequential basis, net profit rose by 5.3%, highlighting the bank’s consistent growth trajectory.
The board of directors has recommended a dividend of Rs 22 per share, with the record date set for June 27, 2025. This marks another milestone for the bank, as it continues to deliver strong financial returns to its shareholders.
Highlights:
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Net profit for Q4 FY25 at Rs 17,616 crore, up 6.7% YoY
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Earnings exceeded analysts’ estimates of Rs 17,072 crore
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Dividend of Rs 22 per share declared, with the record date set for June 27, 2025
Asset Quality: A Slight Deterioration in NPAs
HDFC Bank reported a slight deterioration in its asset quality during Q4 FY25. The gross non-performing asset (NPA) ratio stood at 1.33% as of March 31, 2025, down from 1.42% in the previous quarter but up from 1.24% a year ago. Similarly, the net NPA ratio decreased to 0.43% compared to 0.46% in the previous quarter, but higher than the 0.33% reported in Q4 FY24.
In absolute terms, the bank’s gross NPAs fell to Rs 35,222.64 crore, from Rs 36,018.58 crore as of December 31, 2024. However, gross NPAs were up from Rs 31,173.32 crore a year ago. Despite this, provisions and contingencies for the quarter stood at Rs 3,190 crore, significantly lower than the Rs 13,510 crore reported in the same quarter of the previous year.
Highlights:
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Gross NPA ratio at 1.33%, a slight improvement from the previous quarter
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Net NPA ratio decreased to 0.43%
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Provisions for Q4 FY25 at Rs 3,190 crore, a sharp decrease from Rs 13,510 crore in Q4 FY24
Net Interest Income (NII) and Margin Performance
HDFC Bank reported a 10.3% growth in net interest income (NII) for Q4 FY25, which stood at Rs 32,070 crore compared to Rs 29,080 crore in the same period of FY24. On a sequential basis, NII increased from Rs 30,650 crore in Q3 FY25.
The bank’s net interest margin (NIM) for the quarter was 3.54% on total assets, and 3.73% based on interest-earning assets. Excluding Rs 700 crore of interest from an income tax refund, the core NIM was 3.46% on total assets and 3.65% based on interest-earning assets.
Highlights:
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NII grew 10.3% YoY to Rs 32,070 crore
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Net Interest Margin (NIM) at 3.54% on total assets, and 3.73% on interest-earning assets
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Core NIM (excluding tax refund) at 3.46% on total assets
Deposits: Robust Growth in CASA and Time Deposits
HDFC Bank reported a 15.8% year-on-year growth in average deposits for the January-March 2025 quarter, which stood at Rs 25.28 lakh crore, up from Rs 21.84 lakh crore in the same quarter of the previous year. Sequentially, average deposits grew by 3.1% compared to the December 2024 quarter.
The bank’s average CASA (Current Account Savings Account) deposits grew by 5.7% YoY, reaching Rs 8.3 lakh crore for Q4 FY25. CASA deposits as a percentage of total deposits stood at 34.8%. Time deposits also saw strong growth, rising 20.3% YoY to Rs 17.70 lakh crore, reflecting the bank’s ability to attract stable, low-cost funds.
Highlights:
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Average deposits grew 15.8% YoY to Rs 25.28 lakh crore
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CASA deposits grew 5.7% YoY to Rs 8.3 lakh crore
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Time deposits increased 20.3% YoY to Rs 17.70 lakh crore
Advances: Strong Growth in Retail and Commercial Loans
Gross advances stood at Rs 26.44 lakh crore as of March 31, 2025, reflecting a 5.4% year-on-year increase. Advances under management grew by 7.7% compared to March 2024. Retail loans continued to show robust growth, rising by 9.0%, while commercial and rural banking loans grew by 12.8%. However, corporate and other wholesale loans saw a decline of 3.6%.
The proportion of overseas advances was relatively small, accounting for just 1.7% of total advances. This indicates the bank’s continued focus on its domestic market for loan growth.
Highlights:
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Gross advances grew by 5.4% YoY to Rs 26.44 lakh crore
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Retail loans up 9.0%, commercial and rural loans up 12.8%
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Overseas advances accounted for just 1.7% of total advances
Capital Adequacy: Strong Financial Position
HDFC Bank’s total Capital Adequacy Ratio (CAR) stood at 19.6% as of March 31, 2025, up from 18.8% a year ago. This is well above the regulatory requirement of 11.7%. The bank’s Tier 1 CAR was 17.7%, and its Common Equity Tier 1 Capital ratio was 17.2%, indicating a strong financial position to support growth and mitigate risks.
Highlights:
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CAR at 19.6%, well above the regulatory minimum of 11.7%
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Tier 1 CAR at 17.7% and Common Equity Tier 1 Capital ratio at 17.2%
