HDFC Bank Q4FY25 Results: Net Profit Rises 6.7% to Rs 17,616 Crore, Beats Street Estimates

HDFC Bank, the country’s largest private sector lender, reported a 6.7 per cent year-on-year increase in standalone net profit at Rs 17,616 crore for the January-March quarter of FY25, compared to Rs 16,521.9 crore in the same period last year. The results, announced on Saturday, surpassed market expectations, driven by strong net interest income (NII) and improved margins.

NII—representing the difference between interest earned and interest paid—grew 10.3 per cent to Rs 32,066 crore from Rs 29,076.8 crore in Q4FY24. Total income for the quarter stood at Rs 89,488 crore, nearly flat compared to Rs 89,639 crore a year earlier. Interest income rose to Rs 77,460 crore from Rs 71,473 crore.

The bank's board has recommended a dividend of ₹22 per equity share (2,200%) for the financial year ended March 31, 2025.

On the asset quality front, HDFC Bank saw a marginal increase in stress. Gross Non-Performing Assets (NPAs) stood at 1.33 per cent of gross advances as of March-end, up from 1.24 per cent a year ago. Net NPAs also inched up to 0.43 per cent from 0.33 per cent.

The lender’s capital adequacy ratio (CAR) under Basel III norms remained robust at 19.6 per cent. The balance sheet expanded to Rs 39.10 lakh crore as of March 31, 2025, from Rs 36.17 lakh crore the previous year.

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Excluding tax refunds, the core net interest margin (NIM) was 3.46 per cent on total assets and 3.65 per cent on interest-earning assets.

Following a cumulative 50 basis points policy rate cut by the Reserve Bank of India since February, HDFC Bank recently reduced its savings account interest rate by 25 basis points—the first such move in three years. Analysts expect this reduction to support margin improvement in upcoming quarters.

Post its merger with parent company HDFC in 2023, the bank gained a significant loan portfolio but relatively lower deposit inflows, increasing pressure to mobilize more deposits or moderate its lending pace.