HDFC Bank's Q4 profit rises 6.7% YoY to Rs 17,616 cr

India's largest private lender HDFC Bank recorded a 6.7% year-on-year (YoY) growth in its net profit at Rs 17,616 crore in the January–March quarter of the financial year 2024-25 (Q4FY25) due to strong net interest income growth.

The bank's net interest income for the quarter ended March 31, 2025, grew by 10.3% to Rs 32,070 crore from Rs 29,080 crore for the quarter ended March 31, 2024. Net interest margin (NIM) came in at 3.54% on total assets and 3.73% on earning assets. Other income (non-interest revenue) as of March 31, 2025, was recorded at Rs 12,030 crore.

The banking giant's operating expenses in the said quarter dipped to Rs 17,560 crore against Rs 17,970 crore during the corresponding quarter of the previous year. HDFC Bank's operating profit, however, fell to Rs 26,537 crore in Q4, down 9.4% from Rs 29,274 crore in the year-ago period.

As of March 31, 2025, the bank's balance sheet size grew to Rs 39.1 lakh crore against Rs 36.1 lakh crore as of March 31, 2024. Its average deposits were Rs 25.2 lakh crore for the March 2025 quarter, a growth of 15.8% over Rs 21.8 crore in the year-ago period.

In terms of gross advances, HDFC Bank saw a growth of 5.4% to Rs 26.4 lakh crore as of March 31, 2025, while advances under management grew by 7.7% over March 31, 2024.

"Retail loans grew by 9%, commercial and rural banking loans grew by 12.8% and corporate and other wholesale loans were lower by 3.6%. Overseas advances constituted 1. 7% of total advances," HDFC Bank says in an exchange filing.

Profit was recorded at Rs 67,350 crore, up by 10.7% over the corresponding year ended March 31, 2024.

The bank said its total capital adequacy ratio (CAR) as per Basel Ill guidelines was at 19.6% as on March 31, 2025, against 18.8% as on March 31, 2024, up from the regulatory requirement of 11. 7%. Tier 1 CAR was at 17.7%, and common equity tier 1 capital ratio was at 17.2% as of March 31, 2025.

Provisions and contingencies for the said quarter dropped 76% YoY to Rs 3,193 crore in Q4 FY25.

The HDFC Bank board has recommended a dividend of  Rs 22 per equity share for the year ended March 31, 2025, which will be subject to approval by the shareholders at the next annual general meeting. The record date has been fixed on June 27, 2025.

As of March 31, 2025, the bank's distribution network grew to 9,455 branches and 21,139 ATMs across 4,150 cities/towns. Of this, 51% of the branches are in semi-urban and rural areas.

The lender's gross non-performing assets (NPAs) were at 1.33% of gross advances as on March 31, 2025 against 1.42% as on December 31, 2024 against 1:24% as on March 31, 2024, while the net non-performing assets were at 0.43% of net advances as on March 31, 2025.