| HDFC Bank has reported 7%
growth in net profit to Rs 17616.14 crore for the quarter ended March 2025
(Q4FY2025). The bank has posted healthy 10% growth in net interest income
(NII), while the core fee income of the bank improved 7% in Q4FY2025. The Net
Interest Margin (NIM) of the bank rose to 3.46% in Q4FY2025 compared to 3.44%
in the corresponding quarter of previous year.
On business front, the bank as has
posted 10% growth in business with 5% rise in loan book. The asset quality of
the bank was stable in Q4FY2025. Bank has substantially reduced the credit to
deposit ratio to 97.4% at end March 2025 from 105.4% at end March 2024. The
CASA ratio of the bank has improved on sequential basis to 34.8% at end March
2025 from 34.0% end December 2024, while declined from 38.2% at end March 2024.
Asset quality improves: The bank has improved asset quality in
Q4FY2025.
The fresh slippages of loans declined
on sequential basis to Rs 7500 crore in Q4FY2025 compared with 8800 crore in
previous quarter and Rs 7300 crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
stood at Rs 5000 crore, while the write-off of loans was at Rs 3300 crore in
Q4FY2025.
Provision coverage ratio was steady at
68% at end March 2025 compared to 68% a quarter ago and declined from 74.00% a
year ago.
The capital adequacy ratio of the bank
stood at 19.6% with Tier I ratio at 17.7% at end March 2025.
The risk weighted assets of the bank
has increased 8% YoY to Rs 2660000 crore end March 2025,
|
Asset Quality
Indicators: HDFC Bank
|
|
|
Mar-25
|
Dec-24
|
Sep-24
|
Jun-24
|
Mar-24
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Variation
|
|
|
QoQ
|
YoY
|
|
|
Gross NPA (Rs
Crore)
|
35222.64
|
36018.58
|
34250.62
|
33025.69
|
31173.32
|
-2
|
13
|
|
|
Net NPA (Rs Crore)
|
11320.43
|
11587.54
|
10308.54
|
9508.44
|
8091.74
|
-2
|
40
|
|
|
% Gross NPA
|
1.33
|
1.42
|
1.36
|
1.33
|
1.24
|
-9
|
9
|
|
|
% Net NPA
|
0.43
|
0.46
|
0.41
|
0.39
|
0.33
|
-3
|
10
|
|
|
% PCR
|
68.00
|
68.00
|
70.00
|
71.00
|
74.00
|
0
|
-600
|
|
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% CRAR - Basel III
|
19.55
|
19.97
|
19.77
|
19.33
|
18.80
|
-42
|
75
|
|
|
% CRAR - Tier I -
Basel III
|
17.70
|
18.03
|
17.79
|
17.33
|
16.79
|
-33
|
91
|
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has increased
10% YoY to Rs 5358215 crore end March 2025, driven by 14% jump in deposits to
Rs 2714715 crore, while advances increased 5% to Rs 2643500 crore at end March
2025.
Total balance sheet size at end March 2025 was Rs 3910200 crore as against Rs
3617600 crore at end March 2024.
CASA deposits ratio improves: The CASA deposits of the bank increased
4% YoY to Rs 944600 crore at end March 2025. The current account deposits rose 1%
to Rs 314100 crore, while saving account deposits increased 5% to Rs 630500
crore end March 2025. The CASA ratio declined to 34.8% at end March 2025
compared to 38.2% at end March 2024, while improved from 34.0% a quarter ago.
The term deposits have increased 20% to Rs 1770115 crore end March 2025.
The Bank’s average deposits were Rs 2528000 crore
for the March 2025 quarter, a growth of 15.8% over Rs 2183600 crore for the
March 2024 quarter, and 3.1% over Rs 2452800 crore for the December 2024
quarter.
The Bank’s average CASA deposits were Rs 828900
crore for the March 2025 quarter, a growth of 5.7% over Rs 784400 crore for the
March 2024 quarter, and 1.4% over Rs 817600 crore for the December 2024
quarter.
Loan growth improves: Advances growth was driven by retail
loans rising 9% YoY to Rs 1375800 crore at end March 2025, while credit to
agriculture increased 12% to Rs 118400 crore and MSME 13% to Rs 786500 crore at
end March 2025. The corporate credit has declined 4% to Rs 492600 crore end
March 2025. The overseas credit has jumped 19% to Rs 44940 crore end March
2025.
Investment book of the bank increased 19% YoY to Rs
836360 crore at end March 2025.
Margins improve: The bank has showed 44 bps YoY dip in
cost of deposits to 6.69%, while yield on advances increased 32 bps YoY to
11.72% in Q4FY2025. NIM has improved 10 bps YoY and 11 bps qoq to 3.46% in
Q4FY2025. Excluding Rs 700 crore of interest on income tax refund, core net
interest margin was at 3.46% for Q4FY2025.
Branch expansion: The bank has added 312 branches and 90
ATMs in Q4FY2025, taking overall tally to 9455 branches and 21139 ATM`s end
March 2025.
Book value of the bank stood at Rs 655.3 per share
at end March 2025, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 640.1 per share at end March 2025.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 8% increase in the
interest earned at Rs 77460.11 crore, while interest expenses increased 7% to
Rs 45394.31 crore in Q4FY2025. NII improved 10% to Rs 32065.80 crore in the
quarter ended March 2025.
Healthy growth in the core fee income: Bank has posted strong 7% growth in
core fee income to Rs 8530 crore, while the recoveries and other income jumped
16% to Rs 1670 crore and forex income 26% to Rs 1440 crore. Further, the
treasury income surged 57% to Rs 390 crore. The overall non-interest income
declined 34% to Rs 12027.88 crore in the quarter ended March 2025, as the bank
had recorded transaction gains of Rs 7340 crore from stake sale in subsidiary
HDFC Credila Financial Services for Q4FY2024.
Expenses ratio: The operating expenses of the bank declined
2% to Rs 17556.98 crore, as employee expenses declined 12% to Rs 6115.94 crore and
other expenses moved up 4% to Rs 11441.04 crore in Q4FY2025. Cost to income
ratio rose to 39.8% in Q4FY2025 compared with 38.0% in Q4FY2024, causing 9%
decline the Operating Profit to Rs 26536.70 crore in Q4FY2025.
Provisions and contingencies decline: The bank has showed -76% decline in
provisions to Rs 3193.05 crore.
Effective tax rate increased to 24.5% in Q4FY2025 from negative
tax rate of 4.8% in Q4FY2024. Net Profit rose by 7% YoY to Rs 17616.14 crore
during quarter ended March 2025.
Consolidated financial results:
The Bank’s consolidated net revenue was
Rs 73280 crore for Q4FY2025. The consolidated profit after tax for Q4FY2025 was
Rs 18830 crore. The consolidated PAT adjusted for trading and mark to market
gains, prior year one-off provisions and prior year tax credits, grew by
approximately 10%. The consolidated PAT for FY2025 was Rs 70790 crore .
Earnings per share for Q4FY2025 was Rs 24.6 and Rs 92.8 for FY2025. Book value
per share at end March 2025 was Rs 681.9.
Subsidiaries
HDB Financial Services (HDBFSL), is a
non-deposit taking NBFC in which the Bank holds a 94.3% stake. For Q4FY2025,
HDBFSL’s net revenue was at Rs 2620 crore. Profit after tax for Q4FY2025 was Rs
530 crore compared to Rs 660 crore for Q4FY2024. Profit after tax for FY2025
was Rs 2180 crore. The total loan book was Rs 106900 crore as on March 2025.
Stage 3 loans were at 2.26% of gross loans. Total CAR was at 19.2% with Tier-I
CAR at 14.7%.
HDFC Life Insurance Company (HDFC
Life), in which the Bank holds a 50.3% stake, is a leading life insurance
solutions provider. Profit after tax for Q4FY2025 was Rs 480 crore compared to
Rs 410 crore for Q4FY2024, a growth of 15.8%. Profit after tax for FY2025 was
Rs 1800 crore.
HDFC ERGO General Insurance Company
(HDFC ERGO), in which the Bank holds a 50.3% stake, offers a range of general
insurance products. Profit after tax for Q4FY2025 was Rs 70 crore, as against
loss after tax of Rs 130 crore for Q4FY2024. Profit after tax for FY2025 was Rs
500 crore.
HDFC Asset Management Company (HDFC
AMC), in which the Bank holds a 52.5% stake, is the Investment Manager to HDFC
Mutual Fund, and offers a comprehensive suite of savings and investment
products. For Q4FY2025, HDFC AMC’s Quarterly Average Assets Under Management
were approximately Rs 774000 crore. Profit after tax for Q4FY2025 was Rs 640
crore compared to Rs 540 crore for Q4FY2024, a growth of 18.0%. Profit after
tax for FY2025 was Rs 2460 crore.
HDFC Securities (HSL), in which the
Bank holds a 94.5% stake, is amongst the leading broking firms. For Q4FY2025,
HSL’s total revenue was Rs 740 crore. Profit after tax for Q4FY2025 was Rs 250
crore, as against Rs 320 crore for Q4FY2024. Profit after tax for FY2025 was Rs
1130 crore.
Financial Performance FY2025:
Bank has posted 11% increase in net profit to Rs 67347.35 crore in
the year ended March 2025 (FY2025). The net interest income increased 13% to Rs
122670.08 crore, while non-interest income fell 7% to Rs 45632.28 crore,
pushing up net total income by 7% to Rs 168302.36 crore in FY2025. The
operating expenses increased 8% to Rs 68174.89 crore, while provision and
contingencies dipped 50% to Rs 11649.42 crore, allowing profit before tax to
increase 25% to Rs 88478.05 crore in FY2025. The cost-to-income ratio was
steady at 40.5% in FY2025 compared to 40.2% in FY2024. An effective tax rate rose
to 23.9% in FY2025 compared to 14.2% in FY2024. The net profit has increased
11% to Rs 67347.35 crore in FY2025.
|
HDFC Bank: Results
|
|
Particulars
|
2503 (3)
|
2403 (3)
|
Var %
|
2503 (12)
|
2403 (12)
|
Var %
|
|
Interest Earned
|
77460.11
|
71472.75
|
8
|
300517.03
|
258340.56
|
16
|
|
Interest Expended
|
45394.31
|
42395.93
|
7
|
177846.95
|
149808.09
|
19
|
|
Net Interest Income
|
32065.80
|
29076.82
|
10
|
122670.08
|
108532.47
|
13
|
|
Other Income
|
12027.88
|
18166.25
|
-34
|
45632.28
|
49240.99
|
-7
|
|
Net Total Income
|
44093.68
|
47243.07
|
-7
|
168302.36
|
157773.46
|
7
|
|
Operating Expenses
|
17556.98
|
17968.83
|
-2
|
68174.89
|
63386.01
|
8
|
|
Operating Profits
|
26536.70
|
29274.24
|
-9
|
100127.47
|
94387.45
|
6
|
|
Provisions &
Contingencies
|
3193.05
|
13511.64
|
-76
|
11649.42
|
23492.14
|
-50
|
|
Profit Before Tax
|
23343.65
|
15762.60
|
48
|
88478.05
|
70895.31
|
25
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
23343.65
|
15762.60
|
48
|
88478.05
|
70895.31
|
25
|
|
Provision for tax
|
5727.51
|
-749.25
|
PL
|
21130.70
|
10083.03
|
110
|
|
PAT
|
17616.14
|
16511.85
|
7
|
67347.35
|
60812.28
|
11
|
|
EPS*(Rs)
|
92.1
|
86.3
|
|
88.0
|
79.5
|
|
|
Adj BV (Rs)
|
640.1
|
568.3
|
|
640.1
|
568.3
|
|
|
* Annualized on current equity
of Rs 765.22 crore. Face Value: Rs 1, Figures in Rs crore
PL: Profit to Loss, LP: Loss to
Profit
|
|
Source: Capitaline Corporate
Database
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