HDFC Bank (HDFCBANK) Q3 24/25 earnings summary

Executive summary

• Navigated a challenging macro environment with tight liquidity, moderating urban demand, and volatile capital flows, while rural demand and government spending picked up; Q3 FY25 profit after tax reached ₹167 bn, with consolidated EPS at 23.1 and RoA of 1.87%.

• Average deposits grew 15.9% YoY and 4.2% QoQ; average advances under management rose 7.6% YoY and 2.5% QoQ.

• Asset quality remained stable with GNPA at 1.42% and ex-agri GNPA at 1.19%.

• Capital adequacy ratio stood at 20.0%, with CET1 at 17.5%.

• Results for the nine months ended December 31, 2024, include the operations of eHDFC Limited post-amalgamation, making them not comparable to the previous year.

Financial highlights

• Net deposit growth of 15% year-over-year, with time deposits growing at 22.7%.

• Standalone net interest income for Q3 FY25 was ₹76,006.88 crore, up from ₹70,582.61 crore in Q3 FY24.

• Standalone profit after tax was ₹167.4 bn, up 2.2% YoY; consolidated profit was ₹176.6 bn, up 2.3% YoY.

• Cost-to-income ratio stable at 40–41%; cost-to-assets at 1.93%, among best in class.

• Provision coverage ratio (PCR) at 68% overall, 71% excluding agri; agri slippages are seasonal and within normal patterns.

Outlook and guidance

• FY25 loan growth to be below system, FY26 in line, and FY27 above system, as per strategic plan.

• Confident in ability to accelerate growth as macro and liquidity conditions improve.

• HDB Financial Services filed a Draft Red Herring Prospectus for an IPO, including a fresh issue and offer for sale, subject to regulatory approvals and market conditions.

• Expect CASA ratios and margins to improve as interest rates decline and deposit mix normalizes.

• Continued focus on productivity, efficiency, and selective investment in people, branches, and technology.