HDFC Bank share price jumps despite Indian stock market fall. Here’s why

Shares of HDFC Bank climbed 2 percent in early trade on Friday, April 4, defying the broader market downtrend, after the private sector lender posted a strong business update for the quarter ended March 2025 (Q4FY25). The market welcomed the bank’s steady progress on loan and deposit growth, along with its continued focus on recalibrating its post-merger balance sheet strategy.

Strong Operational Performance in Q4

HDFC Bank reported gross advances of ₹26.43 lakh crore as of March 31, 2025, registering a 5.4 percent year-on-year growth compared to ₹25.07 lakh crore a year earlier. On a sequential basis, gross advances rose 4 percent from ₹25.42 lakh crore reported at the end of the December 2024 quarter (Q3FY25).

The bank’s total deposits stood at ₹27.14 lakh crore, reflecting a 14.1 percent year-on-year growth from ₹23.79 lakh crore in Q4FY24. Sequentially, deposits rose by 5.9 percent over ₹25.64 lakh crore reported at the end of Q3FY25.

HDFC Bank also securitised ₹57,000 crore worth of loans in FY25, including ₹10,700 crore in the March quarter alone. The average deposit base expanded 15.9 percent year-on-year and 3.1 percent quarter-on-quarter to ₹25.28 lakh crore. Meanwhile, CASA deposits increased 5.7 percent year-on-year and 1.4 percent sequentially to ₹8.29 lakh crore.

Strategic Focus on Credit-Deposit Ratio

The management has previously indicated that FY25 would be a year of consolidation, with loan growth expected to lag behind the broader banking system. This cautious approach is part of HDFC Bank’s broader strategy to bring its elevated credit–deposit (CD) ratio back to pre-merger levels, following the merger with parent HDFC Ltd.

Looking ahead, the bank has guided that it will aim to match system-wide loan growth in FY26 and outperform in FY27, once it has realigned its balance sheet and deposit base.

Stock Price Trend

The stock jumped as much as 2 percent to its day's high of ₹1,830. It is just 2.6 percent away from its peak of ₹1,880, hit in December 2024. Meanwhile, it has advanced 28 percent from its 52-week low of ₹1,430.15, hit in May 2024.

The banking stock has risen 21 percent in the last 1 year. Moreover, it rose 5.5 percent in March following a 2 percent gain in February. In January, it fell over 4 percent.

Technical View

"HDFC Bank shares look strong in terms of the technical chart pattern. They face resistance at ₹1900 and have made a strong base at ₹1780 apiece. So, HDFC Bank shareholders are advised to hold the scrip, maintaining a stop loss at ₹1780 apiece for the short-term target of ₹1900 to ₹1925. Fresh investors can also initiate momentum by buying HDFC Bank shares for the short-term target of ₹1925 while maintaining a stop loss at ₹1780," said Sumeet Bagadia, Executive Director at Choice Broking.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.