HDFC Bank shares gain 3% on positive Q4 update, brokerages reaffirm optimism

The bank’s current account-savings account (CASA) deposits increased 5.7 percent YoY to Rs 8.3 lakh crore.

India's largest lender HDFC Bank Ltd.'s shares emerged as a bright spot in a sea of red on April 4, as the bank's stock soared three percent on its positive business update for the quarter ended March 31, 2025.

At 10.25 am, HDFC Bank shares were trading at Rs 1,830.5 per share, higher by 2.05 percent on the BSE compared to the previous session's closing price.

HDFC Bank reported a 5.4 percent year-on-year (YoY) growth in total advances, reaching Rs 26.4 lakh crore in the January-March quarter of FY25, according to an exchange filing on March 3. Deposits saw a 15.8 percent YoY jump to ₹25.3 lakh crore during the same period.

The bank’s current account-savings account (CASA) deposits increased 5.7 percent YoY to Rs 8.3 lakh crore. Retail loans expanded by 9 percent, while commercial and rural banking loans surged 12.8 percent. However, corporate loans declined by 3.6 percent compared to the previous year.

Sequentially, gross advances rose 4 percent from Rs 25.4 lakh crore in the October-December quarter, while deposits increased 5.9 percent over the same period. The lender's average advances under management stood at Rs 26.95 lakh crore in Q4FY25, reflecting a 7.3 percent YoY growth.

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"HDFC Bank’s business growth remained solid, with advances growth surpassing our estimates. Deposit growth was strong, outperforming system deposit growth (in line with our estimates). CASA deposits saw robust expansion, driving the CASA ratio to 34.8 percent," said domestic brokerage Motilal Oswal. The brokerage maintained its buy rating on the lender.

Gross advances growth was led by commercial and rural banking segment while wholesale loans continued to decline and retail loan growth was broadly steady, noted InCred Equities. The brokerage reaffirmed its 'high-conviction add' with a target price of Rs 2,150 per share.

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