India’s largest private sector lender HDFC Bank reported its financial results for the fourth quarter of FY25, posting a 6.7 percent year-on-year rise in standalone net profit to Rs 17,616 crore. The earnings surpassed Street expectations, with analysts projecting a net profit of Rs 17,072 crore, according to a Moneycontrol poll. On a sequential basis, net profit rose by 5.3 percent.
HDFC Bank said its board has recommended a dividend of Rs 22 per share of face value of Rs 1 each for the financial year 2024-25. The record date for the dividend is Friday, 27 June 2025.
Asset quality
Gross non-performing asset (NPA) ratio of the bank shrunk to 1.33 percent as on March 31, 2025, as compared to 1.42 percent as on December 31, 2024. However, it expanded from 1.24 percent a year ago, showed the stock exchange filings.
Similarly, Net NPA ratio of the bank stood at 0.43 percent in the reporting quarter, as compared to 0.46 percent in a quarter ago period and 0.33 percent previous year.
In absolute terms, gross NPAs fell to Rs 35,222.64 crore as of March 31, 2025, as compared to Rs 36,018.58 crore as on December 31, 2024. It rose from Rs 31,173.32 crore as on March 31, 2024.
Even though the asset quality of the bank has deteriorated, provisions and contingencies for the quarter ended March 31, 2025 stood at Rs 3,190 crore , as as against Rs 13,510 crore for the quarter ended March 31, 2024, according to the release.
NIM & NII
Net interest income (interest earned less interest expended) for the quarter ended March
31, 2025 grew by 10.3 percent to Rs 32,070 crore from Rs 29,080 crore for the quarter ended March
31, 2024, release said.
Net interest income of the bank in a quarter ago period stood at Rs 30,650 crore.
Net interest margin was at 3.54 percent on total assets, and 3.73 percent based on interest
earning assets. Excluding Rs 700 crore of interest on income tax refund, core net interest margin
was at 3.46 percent on total assets, and 3.65 percent based on interest earning assets, release said.
Other income (non-interest revenue) for the quarter ended March 31, 2025 was Rs 12,030
crore. The four components of other income for the reporting quarter were fees & commissions of Rs 8,530 crore, foreign exchange & derivatives revenue of Rs 1440 crore, net trading and mark to market gain of Rs 390 crore and miscellaneous income, including recoveries and dividend of Rs 1,670 crore.
Deposits
The Bank’s average deposits were grew 15.8 percent on-year to Rs 25.28 lakh crore in January-March quarter. In a year ago period, average deposit of the bank stood at Rs 21.84 lakh crore, and in a quarter ago period it stood at Rs 24.53 lakh crore. On a sequential basis, average deposit of the bank grew just 3.1 percent.
The Bank’s average CASA deposits were Rs 8.3 lakh crore for the March 2025 quarter, a
growth of 5.7 percent over Rs 7.85 lakh crore for the March 2024 quarter, and 1.4 percent over Rs 8.18 lakh crore for the December 2024 quarter, release said.
CASA deposits grew by 3.9 percent with savings account deposits at Rs 6.31 lakh crore and current account deposits at Rs 3.14 lakh crore. Time deposits were at Rs 17.70 lakh crore, an increase of 20.3 percent over the corresponding quarter of the previous year, resulting in CASA deposits comprising 34.8 percent of total deposits as of March 31, 2025.
Advances
Gross advances were at Rs 26.44 lakh crore as of March 31, 2025, an increase of 5.4 percent over
March 31, 2024. Advances under management grew by 7.7 percent over March 31, 2024.
Retail loans grew by 9.0 percent, commercial and rural banking loans grew by 12.8 percent and
corporate and other wholesale loans were lower by 3.6 percent. Overseas advances
constituted 1.7 percent of total advances.
Capital Adequacy
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.6 percent
as on March 31, 2025 (18.8 percent as on March 31, 2024) as against a regulatory requirement
of 11.7 percent. Tier 1 CAR was at 17.7 percent and Common Equity Tier 1 Capital ratio was at 17.2 percent as of March 31, 2025. Risk-weighted Assets were at ₹ 26.60 lakh crore.
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