Rs 22 Per Share Dividend Declared: India's Top Ranked Private Bank Reports Rs 17,616 Crore Q4 Profit, Reduces NPAs, Grows Deposits; Stock Trades at All-time High
In the last year, the stock has given a 24.46 per cent return, outperforming the Bank Nifty Index, delivering 14 per cent returns. In the last 5 years, the stock price has surged by 109 per cent.
HDFC Bank, India’s largest private sector bank, reported a standalone net profit of Rs 17,616 crore for the fourth quarter of FY25, marking a 6.7 per cent year-on-year growth. On a sequential basis, profit rose 5.3 per cent.
The gross NPA ratio declined to 1.33 per cent as of March 31, 2025, from 1.42 per cent in the previous quarter, though higher than 1.24 per cent a year earlier. Net NPA stood at 0.43 per cent, slightly down from 0.46 per cent in Q3 FY25 but up from 0.33 per cent in Q4 FY24. In absolute terms, gross NPAs declined to Rs 35,222.64 crore from Rs 36,018.58 crore in the previous quarter, but were higher than Rs 31,173.32 crore reported a year ago. Provisions for the quarter dropped sharply to Rs 3,190 crore from Rs 13,510 crore in Q4 FY24.
Net interest income (NII) rose by 10.3 per cent to Rs 32,070 crore from Rs 29,080 crore in the same period last year. Sequentially, NII stood at Rs 30,650 crore in Q3 FY25. The net interest margin (NIM) was reported at 3.54 per cent on total assets and 3.73 per cent on interest-earning assets. After adjusting for Rs 700 crore of income tax refund, core NIM stood at 3.46 per cent and 3.65 per cent, respectively. Other income came in at Rs 12,030 crore, driven by Rs 8,530 crore from fees and commissions, Rs 1,440 crore from forex and derivatives, Rs 390 crore in trading gains, and Rs 1,670 crore from miscellaneous sources.
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Average deposits rose 15.8 per cent YoY to Rs 25.28 lakh crore in Q4 FY25. Sequentially, deposits increased by 3.1 per cent over Rs 24.53 lakh crore in Q3. CASA deposits stood at Rs 8.3 lakh crore, showing a 5.7 per cent increase YoY and 1.4 per cent QoQ. Within this, savings deposits were Rs 6.31 lakh crore, and current account deposits were Rs 3.14 lakh crore. Time deposits rose 20.3 per cent YoY to Rs 17.70 lakh crore, making CASA 34.8 per cent of total deposits.
Total gross advances reached Rs 26.44 lakh crore, growing 5.4 per cent YoY. Advances under management rose by 7.7 per cent. Retail loans grew 9 per cent, commercial and rural banking loans increased 12.8 per cent, while corporate and wholesale loans dropped 3.6 per cent. Overseas loans formed 1.7 per cent of total advances.
The bank maintained a strong capital position with a total Capital Adequacy Ratio of 19.6 per cent under Basel III norms, above the regulatory requirement of 11.7 per cent. Tier 1 capital ratio stood at 17.7 per cent, with Common Equity Tier 1 at 17.2 per cent. Risk-weighted assets were reported at Rs 26.60 lakh crore.
The bank's board has proposed a dividend of Rs 22 per share (face value Rs 1), with the record date set as June 27, 2025. In the last year, the stock has given a 24.46 per cent return, outperforming the Bank Nifty Index, delivering 14 per cent returns. In the last 5 years, the stock price has surged by 109 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.