HDFC Bank Q4 Results: Net Profit Rises 6.7% to Rs 17,616 Crore, Declares Rs 22 Dividend

HDFC Bank Q4 Results: Net Profit Jumps 6.7% YoY to Rs 17,616 Crore, Declares Rs 22 Dividend

India's largest private sector lender, HDFC Bank, released its fourth-quarter results for the financial year 2024-25 on Saturday, April 19, 2025, reporting solid growth in profitability and core banking metrics along with a generous dividend payout for shareholders.

Key Financial Highlights

The bank's performance for Q4FY25 demonstrated resilience in a competitive banking environment:

• Net Profit: Increased by 6.7% year-on-year to Rs 17,616 crore, exceeding analyst expectations
• Net Interest Income (NII): Rose by 10.3% year-on-year to Rs 32,070 crore
• Net Revenue: Stood at Rs 44,090 crore, compared to Rs 47,240 crore in Q4FY24
• Dividend: Announced Rs 22 per share for shareholders

Margin Performance

The bank's margins showed stability despite competitive pressures in the lending space:

• Net Interest Margin (NIM): 3.54% on total assets and 3.73% based on interest-earning assets
• Core NIM: 3.46% on total assets and 3.65% on interest-earning assets (excluding Rs 700 crore of interest on income tax refund)

Non-Interest Income

Fee income continued to be a significant contributor to the bank's revenue mix:

• Other Income: Rs 12,030 crore for the quarter
• Fee and Commission Income: Rs 8,530 crore, up from Rs 7,990 crore in the same quarter last year

Asset Quality

The bank maintained relatively stable asset quality metrics with slight movements in NPA ratios:

• Gross Non-Performing Assets (GNPAs): 1.33% of gross advances as of March 31, 2025, compared to 1.24% a year earlier and an improvement from 1.42% in the December 2024 quarter
• Net NPAs: 0.43% of net advances
• Provisions: Provisions and contingencies declined sharply to Rs 3,190 crore in Q4FY25 from Rs 13,510 crore in the same quarter last year, which had included floating provisions of Rs 10,900 crore

Balance Sheet Growth

The bank continued to expand its deposit base and loan portfolio:

Deposit Performance

• Average Deposits: Rose 15.8% year-on-year to Rs 25.28 lakh crore from Rs 21.83 lakh crore
• CASA Deposits: Average CASA deposits stood at Rs 8.29 lakh crore, growing by 5.7% compared to the year-ago quarter

Advances Growth

• Gross Advances: Rs 26.43 lakh crore as of March 31, 2025, marking a 5.4% year-on-year increase
• International Portfolio: Overseas advances comprised 1.7% of total advances

Capital Position

HDFC Bank maintained a robust capital position, providing a strong foundation for future growth:

• Capital Adequacy Ratio (CAR): Improved to 19.6% as of March 31, 2025, up from 18.8% a year earlier

Market Performance

Investor sentiment toward HDFC Bank remained positive ahead of the results announcement:

• Share Price Movement: The bank's shares had ended 1.5% higher at Rs 1,906.55 on the BSE in the previous trading session

Future Outlook

With its strong capital position, stable asset quality, and consistent growth in core banking metrics, HDFC Bank appears well-positioned to maintain its leadership in India's private banking sector. The bank's focus on fee income generation and prudent provisioning strategy suggests a balanced approach to growth and risk management.

The generous dividend declaration of Rs 22 per share reflects management's confidence in the bank's financial health and commitment to shareholder returns, even as it continues to invest in expanding its digital capabilities and branch network to capture growth opportunities in India's evolving banking landscape.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

Categories: banking sector performance, HDFC Bank Q4 results, private bank earnings