HDFC Bank, India’s largest private sector lender, is set to announce its financial results for the fourth quarter of FY25 on April 19, 2025. Analysts predict a steady performance, with modest growth in net profit and net interest income (NII), as the bank continues to navigate post-merger challenges and focus on operational efficiency.
Key Expectations for Q4FY25:
- Net Profit: Analysts estimate a year-on-year (YoY) growth of 3-4%, with net profit likely to range between ₹16,500 crore and ₹17,600 crore. Sequentially, this represents a flat or marginal decline compared to the December quarter.
- Net Interest Income (NII): NII is projected to grow by 5.5-7.3% YoY, reaching approximately ₹30,941 crore to ₹31,200 crore. This growth is attributed to improved liability management and a focus on retail and rural banking segments.
- Margins and Asset Quality: Net interest margins (NIMs) are expected to remain stable at around 3.4-3.5%, while gross non-performing assets (GNPA) are likely to stay flat at 1.4%. Analysts anticipate a slight improvement in net NPA, declining to 0.4% from 0.5% in the previous quarter.
- Loan and Deposit Growth: Loan book expansion is estimated at 3.4-3.8% YoY, driven by retail and commercial banking. Deposits are expected to grow by 14.6% YoY, reflecting the bank’s efforts to mobilize funds and balance its credit-deposit ratio.
- Dividend Announcement: The board may also consider recommending a dividend for FY25, with details expected during the results announcement.
Challenges and Outlook:
HDFC Bank continues to address post-merger headwinds, including high credit-deposit ratios and elevated borrowing costs. However, its strategic focus on operational efficiency, disciplined asset quality, and liability management positions the bank for steady growth in the medium to long term.
The Q4FY25 results will be closely watched for guidance on loan and deposit growth, as well as updates on the bank’s efforts to recover margins and enhance profitability. Investors and stakeholders are also keen to assess the impact of evolving macroeconomic conditions on the bank’s performance.
HDFC Bank’s ability to navigate these challenges while maintaining stable asset quality and operational efficiency will be critical in shaping its growth trajectory in the coming quarters.
