HDFC Bank (HDFCBANK) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated profit rose 6.9% YoY to ₹188.4 billion, with FY25 consolidated PAT at ₹707.9 billion, up ~10% YoY; standalone PAT for FY25 was ₹673.5 billion, up 10.8% YoY.

• Average deposits grew 15.8% YoY, with deposit growth outpacing loans; gross advances as of March 31, 2025, were ₹26,435 billion, up 5.4% YoY.

• Asset quality remained stable with GNPA at 1.33% and net NPA at 0.43% as of March 31, 2025; ex-agri GNPA at 1.13%.

• Capital adequacy ratio stood at 19.6% with CET1 at 17.2% and Tier 1 CAR at 17.7%.

• The Board recommended a dividend of ₹22 per share for FY25, subject to shareholder approval.

Financial highlights

• Standalone net interest income for Q4 FY25 was ₹320.7 billion, up 10.3% YoY; NIM for Q4 FY25 was 3.54% on total assets, with core NIM at 3.46%.

• Cost-to-income ratio for Q4 FY25 was 39.8%.

• Provisions dropped 76.4% YoY to ₹31.9 billion in Q4 FY25.

• Deposit growth was 15.8% YoY, adding INR 3.4 trillion; gross NPAs at 1.33% and net NPAs at 0.43%.

• ROA operated around 1.9% post-merger, with consolidated RoA at 1.94% and RoE at 14.4% for Q4 FY25.

Outlook and guidance

• Loan growth is expected to align with market rates in FY26, with the credit-deposit ratio on a downward path but not as steep as the prior year.

• Management targets continued growth in deposits and advances, maintaining stable asset quality and strong capital ratios.

• CASA ratio is expected to improve with a lag as policy rates decline, following historical trends.

• Focus remains on expanding retail franchise, digital platforms, and ESG initiatives.

• The Bank continues to focus on expanding its distribution network and digital banking capabilities.