HDFC Bank, India’s largest private sector lender, has released its earnings report for the fourth quarter ended March 2025, showcasing a strong and steady performance marked by improved profitability, better asset quality, and shareholder rewards.
For the quarter under review, HDFC Bank reported a net profit of ₹17,616 crore, registering a 6.7% growth year-on-year (YoY) compared to ₹16,511.9 crore in the same quarter last year. This healthy profit growth reflects the bank’s consistent operational strength and effective cost management.
The bank’s Net Interest Income (NII), a key measure of income generated from core lending activities, rose 10.3% YoY to ₹32,066 crore from ₹29,076.8 crore. This significant growth underlines the solid loan book expansion and efficient interest spread management.
Asset quality showed clear signs of improvement during the quarter. The Gross Non-Performing Assets (NPA) decreased to ₹35,222.6 crore, compared to ₹36,018.6 crore in the previous quarter (QoQ). Similarly, Net NPA declined to ₹11,320.4 crore from ₹11,587.5 crore QoQ, reflecting HDFC Bank’s stable credit environment and disciplined recovery efforts.
In terms of NPA ratios, the Gross NPA ratio came down to 1.33% from 1.42% QoQ, while the Net NPA ratio improved to 0.43%, down from 0.46% QoQ — both indicators showcasing strong asset quality and effective risk management strategies.
When it comes to provisions, the bank set aside ₹3,193 crore for the quarter. This figure is slightly higher than the ₹3,153 crore recorded in the previous quarter, but much lower than the ₹13,511.6 crore it had provisioned in the same quarter last year, highlighting a substantial YoY reduction in credit-related stress.
HDFC Bank also reported improved margins. The Net Interest Margin (NIM) on total assets stood at 3.54%, compared to 3.43% QoQ — indicating improved income from interest-bearing assets. Additionally, the bank’s Core Net Interest Margin was reported at 3.46% on total assets, reinforcing the strength of its core banking operations.
As a reward to its shareholders, the bank’s Board of Directors recommended a dividend of ₹22 per share, reaffirming its commitment to delivering value to investors.
Overall, HDFC Bank’s Q4 performance shows a resilient balance sheet, consistent margin strength, and improving asset quality, positioning it well for future growth.
Adding to the bank’s strong fundamentals, HDFC Bank shares have also seen impressive stock market performance. In the last trading session, the stock closed at an all-time high of ₹1,905.80. Over the past six months, the bank’s shares have delivered a 10% gain, reflecting solid investor confidence and positive market sentiment surrounding its business growth and earnings stability.
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