India's largest private lender HDFC Bank reported a 6.7% rise in standalone net profit for the fourth quarter, reaching Rs 17,620 crore as of March-end, compared to Rs 16,510 crore reported in the same quarter last year.
During the quarter, the bank’s net interest income rose by 10.3% to Rs 32,070 crore for the quarter ended March 31, 2025, up from Rs 29,080 crore in the corresponding quarter last year. The net interest margin stood at 3.54% on total assets and 3.73% based on interest-earning assets.
Average deposits for the March 2025 quarter stood at Rs 25,28,000 crore, reflecting a growth of 15.8% from Rs 21,83,600 crore in the March 2024 quarter, and a 3.1% increase over Rs 24,52,800 crore in the December 2024 quarter.
The bank’s average CASA (Current Account Savings Account) deposits stood at Rs 8,28,900 crore in the March 2025 quarter, marking a 5.7% rise from Rs 7,84,400 crore in March 2024 and a 1.4% increase from Rs 8,17,600 crore in December 2024.
The bank’s net revenue for the quarter was Rs 44,090 crore as against Rs 47,240 crore for the quarter ended March 31, 2024, which included transaction gains of Rs 7,340 crore from the stake sale in its subsidiary HDFC Credila Financial Services Ltd.
Asset Quality Update
HDFC Bank's gross non-performing asset (NPA) ratio declined to 1.33% as of March 31, 2025, down from 1.42% recorded on December 31, 2024. However, it was slightly higher than the 1.24% reported in the same period last year, as per the bank’s filing with stock exchanges.
The net NPA ratio stood at 0.43% during the quarter, compared to 0.46% in the previous quarter and 0.33% a year earlier.
In absolute terms, gross NPAs were Rs 35,222.64 crore as of March-end 2025, a decrease from Rs 36,018.58 crore in the previous quarter. However, it reflected a rise from Rs 31,173.32 crore reported in the same quarter of 2024.
Despite some deterioration in asset quality on a yearly basis, the bank’s provisions and contingencies for the quarter ended March 31, 2025, stood at Rs 3,190 crore, significantly lower than Rs 13,510 crore a year ago.
The bank earned Rs 12,030 crore in non-interest income during the March 2025 quarter. This included, Rs 8,530 crore from fees and commissions, Rs 1,440 crore from foreign exchange and derivatives, Rs 390 crore from trading and mark-to-market gains and Rs 1,670 crore from other sources such as recoveries and dividends.
Dividend Announcement
The bank’s board has proposed a final dividend of Rs 22 per equity share (face value of Re 1) for the financial year ending March 31, 2025.
Ahead of the results announcement, HDFC Bank's stock gained 1.48% to close at Rs 1,905.8 on the NSE on Thursday
As of March 31, 2025, the bank’s distribution footprint had expanded to 9,455 branches and 21,139 ATMs across 4,150 cities and towns, up from 8,738 branches and 20,938 ATMs across 4,065 locations a year earlier.
Additionally, the bank had 15,399 business correspondents, most of whom are affiliated with Common Service Centres (CSCs). The total number of employees stood at 2,14,521, compared to 2,13,527 a year earlier.
