HDFC Bank, India’s largest private sector lender, posted a 6.7% year-on-year (YoY) increase in its net profit for the fourth quarter (January–March) of FY25, recording a profit after tax of ₹17,616 crore. To reward its shareholders, the bank also declared a dividend of ₹22 per share.
The bank’s Net Interest Income (NII) — the difference between the interest earned and paid — rose 10.3% YoY to ₹32,070 crore.
For the quarter, the Net Interest Margin (NIM) stood at 3.54% on total assets and 3.73% on interest-earning assets.
Excluding ₹700 crore received from an income tax refund, the core NIM came to 3.46% on total assets and 3.65% on interest-earning assets.
HDFC Bank’s net revenue for Q4 FY25 was ₹44,090 crore, slightly lower than ₹47,240 crore reported during the same quarter last year.
The bank earned ₹12,030 crore from other income, which includes non-interest revenues. Within this, fee and commission income contributed ₹8,530 crore, up from ₹7,990 crore a year ago.
A major positive highlight was the sharp fall in provisions and contingencies, which dropped to ₹3,190 crore from ₹13,510 crore in Q4 FY24.
The same quarter last year had included floating provisions of ₹10,900 crore, which was absent this year.
Asset Quality and Deposit Growth
HDFC Bank’s asset quality remained steady:
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Gross NPAs were 1.33% of gross advances as of March 31, 2025, compared to 1.24% last year.
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Net NPAs were at 0.43%.
The bank’s average deposits grew 15.8% YoY to ₹25.28 lakh crore, while average CASA deposits (Current and Savings Accounts) increased 5.7% to ₹8.29 lakh crore.
Additionally, the Capital Adequacy Ratio (CAR) improved to 19.6%, up from 18.8% a year ago, reflecting strong capital strength.
HDFC Stock Performance
Following the results announcement, HDFC Bank’s share price rose 1.5% to ₹1,906.55 on the BSE.
With solid profit growth and a healthy dividend payout, investor sentiment around HDFC Bank is expected to stay strong.
