HDFC Bank Q4 2025 results :

HDFC Bank has announced its financial results for the fourth quarter of FY25 (January–March 2025), reporting a robust performance that exceeded market expectations.

Here’s a detailed breakdown of HDFC Bank’s Q4 FY25 results (January–March 2025):

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1. Profit & Income Performance

Net Profit

₹17,616 crore, a 6.7% year-on-year (YoY) increase compared to ₹16,511 crore in Q4 FY24.

This beats analysts’ estimates (₹17,072 crore), driven by lower provisions and steady growth in interest income.

Net Interest Income (NII)

₹32,066 crore, up 10.3% YoY from ₹29,077 crore.

Growth driven by increased loan book and relatively stable interest margins.

Net Interest Margin (NIM)

3.54% on total assets; 3.73% on interest-earning assets.

Core NIM (excluding tax refund): 3.46% and 3.65% respectively.

These figures reflect the bank’s strong pricing power despite high-cost deposits.

Total Income

₹89,488 crore, almost flat from ₹89,639 crore in Q4 FY24.

Reflects a marginal decline possibly due to pressure on non-interest income.

Non-Interest Income

₹12,030 crore, includes:

Fee & Commission Income: ₹8,530 crore.

Reflects diversified income streams beyond core lending.

2. Asset Quality

Gross NPA (Non-Performing Assets)

1.33%, an improvement from 1.42% in Q3 FY25.

However, slightly worse than 1.24% in Q4 FY24.

Net NPA

0.43%, up from 0.33% YoY.

Indicates higher stress in some asset classes, but remains low by industry standards

3. Provisions & Contingencies

₹3,193 crore, down 76% YoY from ₹13,512 crore.

This significant drop contributed to higher profitability.

Reflects improved credit quality and resolution of legacy accounts.

4. Balance Sheet Metrics

Deposits

₹27.14 lakh crore, up 14.1% YoY.

CASA (Current Account-Savings Account) ratio was slightly lower, indicating shift towards term deposits.

Advances (Loans)

₹26.43 lakh crore, up 5.4% YoY.

Growth driven by personal loans, home loans, and vehicle financing, though corporate loan growth remained moderate.

Capital Adequacy Ratio (CAR)

19.6% under Basel III norms.

Indicates strong capital buffer to support future growth.

5. Dividend Announcement

Final dividend of ₹22 per share (face value ₹1).

Record date: June 27, 2025.

Signals confidence in future earnings and cash flows.

6. Strategic and Operational Developments

Merger Integration (HDFC Ltd.)

The 2023 merger with HDFC Ltd. is continuing to show scale benefits.

However, deposit growth needs to match the expanding loan book to maintain comfortable liquidity.

Interest Rate Strategy

HDFC Bank reduced savings account interest rates by 25 basis points, aligning with RBI’s rate cuts.

Aim is to protect and expand NIM by managing cost of funds.

7. Market Reaction & Analyst Commentary

Markets have reacted positively due to the earnings beat and improved asset quality.

Analysts have noted:

Strong performance despite margin pressures.

Focused deposit growth needed to sustain lending.