HDFC Bank could report stable March 2025 quarter (Q4) results, as it remains focussed on balancing its credit-deposit ratio (CDR) and balance sheet management, predict analysts.
India’s largest private sector bank, they believe, could report a net profit growth of 4 per cent, on average, on a year-on-year (Y-o-Y) basis for Q4FY25. This, however, would mean a flat performance on a sequential basis.
On the net interest income (NII) front, analysts remain divided and see the growth between -7.6 per cent and 9 per cent Y-o-Y.
“HDFC Bank is addressing near-term post-merger headwinds, including high CDR and high-cost borrowings, by focusing on deposit mobilisation and balance sheet rebalancing. Loan book expansion is led by Retail and Commercial & Rural Banking segments, while enhanced operational efficiency is supporting stable cost ratios. With strategic liability management, margin recovery, and disciplined asset quality, HDFC Bank is poised for steady growth over the medium-to-long term,” said analysts at Motilal Oswal Financial Services in a Q4 results preview report.
HDFC Bank Q4 results date, time:
HDFC Bank is scheduled to report its March quarter results on Saturday, April 19, 2025. The bank, typically, announces its financial results in the afternoon.
“The meeting of the Board of Directors of HDFC Bank is scheduled on 19/04/2025, inter alia, to consider and approve the audited standalone and consolidated financial results of HDFC Bank Limited for the quarter/ year ended March 31, 2025 and other important matters,” HDFC Bank said in a stock exchange filing.
That apart, HDFC Bank could consider the annual renewal of issuance of Long-Term Bonds (Financing of Infrastructure and Affordable Housing), Perpetual Debt Instruments (part of Additional Tier I capital) and Tier II Capital Bonds over the period of next twelve months through private placement mode during the Board meeting.
HDFC Bank Dividend 2025:
Apart from the Q4FY25 financial result announcement, the Board of HDFC Bank could consider and recommend dividend, if any, for the financial year 2024-25 (FY25) on April 19, 2025. It may also fix dividend record date during the meeting.
HDFC Bank Q4 results expectations:
ICICI Securities
ICICI Securities forecasts a steady quarter for HDFC Bank with NII rising 1 per cent quarter-on-quarter (Q-o-Q) and 6.4 per cent Y-o-Y to ₹30,941 crore in Q4FY25. By comparison, HDFC Bank’s NII was ₹ 29,076.8 crore in Q4FY24 and ₹30,653.3 crore in Q3FY25.
Further, the brokerage estimates HDFC Bank’s pre-provision profit of ₹25,235.1 crore for the quarter under review, up 1 per cent Q-o-Q from ₹25,000 crore reported in the December quarter of FY25.
On a Y-o-Y basis, PPoP could drop 14 per cent from ₹29,274.2 crore.
However, aided by a decline in slippages, HDFC Bank’s Q4FY25 net profit could stay flat Y-o-Y at ₹16,507 crore vs ₹16,512 crore reported in Q4FY24. Sequentially, it would be a 1.4 per cent dip from ₹16,735.5 crore.
IIFL Capital
Analysts at IIFL Capital forecast a 7 per cent Y-o-Y and 5 per cent Q-o-Q rise in net profit at around ₹17,600 crore. This, the brokerage anticipates, on the back of a healthy growth in operational income.
NII is seen growing 9 per cent Y-o-Y/3 per cent Q-o-Q to ₹31,600 crore, while core PPoP is expected to rise 22 per cent Y-o-Y/5 per cent Q-o-Q to ₹25,300 crore.
Motilal Oswal Financial Services
Motilal Oswal analysts expect HDFC Bank’s Q4 NII to grow 5.5 per cent Y-o-Y to ₹30,670 crore. They, however, anticipate a 12.7 per cent Y-o-Y decline in operating profit, at ₹25,570 crore, will cap growth in net profit at ₹17,030 crore, up 3.2 per cent Y-o-Y.
On the asset quality front, MOFSL forecasts HDFC Bank’s Q4FY25 gross non-performing asset (GNPA) ratio at 1.4 per cent, unchanged from the December quarter.
The NNPA, on the other hand, is seen improving marginally to 0.4 per cent from 0.5 per cent Q-o-Q. “We expect cost ratios to remain under control in Q4FY25, while margins may see a mild decline,” MOFSL said.
While the brokerage expects CDR to reduce further in the March 2025 quarter, it said guidance for credit growth will remain a key monitorable.
Kotak Institutional Equities
Sharing its Q4FY25 business update, HDFC Bank said its gross advances grew 5.4 per cent Y-o-Y/4 per cent Q-o-Q to ₹26.43 trillion, while deposits surged 14.1 per cent Y-o-Y/5.9 per cent Q-o-Q to ₹27.14 trillion.
The loan growth, according to the brokerage, was better-than-expected, but weaker-than-the-industry average, which reflected the changes that it is undertaking to improve its CDR.
Against this, the bank is expected to report 5.5 per cent Y-o-Y/4.1 per cent Q-o-Q rise in net profit at ₹17,418.6 crore. It, however, anticipates a weak operational performance on a yearly basis.
It sees HDFC Bank’s NII falling 7.6 per cent Y-o-Y to ₹43,661.8 crore, and PPoP dropping 12.6 per cent to ₹25,594.6 crore.
Net interest margin (NIM), however, is expected to stay largely flat around 3.5 per cent.
“We expect the gross NPL ratio to be stable. The near-term focus would be on the progress of NIM (expect a positive outlook for the medium term), growth outlook, and impact of PSL norms in FY25,” it said.
The brokerage has pencilled-in loan loss provisions worth ₹2,665 crore, down 80.3 per cent Y-o-Y from ₹13,511.6 crore and 15.5 per cent Q-o-Q from ₹3,153.9 crore.
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