HDFC Bank Q4 Results: Net profit rises 6.7% to ₹17,616 crore, NII up 10.3% YoY; Dividend declared

HDFC Bank Q4 Results: HDFC Bank announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on Saturday, April 19, reporting a rise of 6.7 per cent in standalone net profit at ₹17,616 crore, compared to ₹16,521.9 crore in the corresponding period last year. 

Net interest income (NII)—the difference between interest earned and paid—rose 10.3 per cent to ₹32,066 crore in the fourth quarter of FY25 compared to ₹29.076.8 crore in the year-ago period.

India's largest private lender beat D-Street estimates in the March quarter driven by higher NII and improving asst quality. Total income increased to ₹89,488 crore during the quarter under review, as against ₹89,639 crore in the same period of last year.

The private sector bank reported interest income of ₹77,460 crore during the January-March quarter of 2024-25, compared to ₹71,473 crore in the same period a year ago.

HDFC Bank's board recommended a dividend of ₹22 per equity share of Re 1 each (2,200 per cent) for the year ended March 31, 2025.

As regards asset quality, the bank witnessed slight deterioration, with gross Non-Performing Assets (NPAs) rising to 1.33 per cent of the gross loans by the end of March 2025, from 1.24 per cent a year ago. Similarly, net NPAs or bad loans rose to 0.43 per cent, from 0.33 per cent at the end of the fourth quarter of the previous fiscal year.

The bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.6 per cent as on March 31, 2025. Total balance sheet size as of March 31, 2025 was ₹39.10 lakh crore, as against ₹36.17 lakh crore as of March 31, 2024. Excluding interest on an income tax refund, HDFC's core net interest margin was 3.46 per cent on total assets and 3.65 per cent on interest-earning assets.

The Mumbai-based lender cut its savings interest rates by 25 basis points after three years on hold, following 50 bps of central bank policy rate cuts since February. According to analysts, the cut is expected to boost HDFC Bank's margins from the next quarter.

HDFC Bank's merger with parent HDFC in 2023 added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under pressure to increase the pace of raising deposits or slow loan growth.

This is a developing story.