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🔍 HDFC Bank – FY25 & Q4FY25 Results Highlights

Lesson 104/151 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

🔍 HDFC Bank – FY25 & Q4FY25 Results Highlights

🏦 1. Business Growth Metrics

📈 Advances Growth

Q4FY25 YoY: ₹26.2 tn, up 5.4% YoY
FY25 YoY: ₹26.2 tn vs ₹24.8 tn in FY24, up 5.4% YoY
Q4FY25 QoQ: Up ₹1.01 tn, or 4.0% QoQ
Advances under management: ₹27.7 tn, up 7.7% YoY, 3.3% QoQ

Retail Loans up 9.0% YoY
Corporate Wholesale down 3.6% YoY
Retail:Wholesale Mix – 57:43

💰 Deposits Growth

Q4FY25 YoY: ₹27.1 tn, up 14.1%
FY25 YoY: Average deposits up 15.8%
QoQ: Up ₹1.51 tn (5.9% QoQ)

CASA deposits grew 8.2% QoQ
CASA ratio slightly improved to 35%

💵 2. Financial Performance

💹 Consolidated Total Income

Q4FY25: ₹89,488 crore vs ₹89,639 crore in Q4FY24 → Flat YoY
FY25: ₹3,46,149 crore vs ₹3,07,582 crore → Up 12.5% YoY

🧾 Net Interest Income (Standalone)

Q4FY25: ₹32,070 crore → Up 10.3% YoY
FY25: ₹1,18,037 crore → Up 15.1% YoY

📊 Consolidated Profit After Tax

Q4FY25: ₹18,840 crore → Up 6.9% YoY
FY25: ₹67,347 crore vs ₹60,812 crore → Up 10.7% YoY

📉 Cost-to-Income Ratio

Q4FY25: 39.8% (Improved from 41.3% YoY)

🔍 3. Key Ratios & Asset Quality

📌 GNPA & NIM

Gross NPA (GNPA): 1.33% in Q4FY25, down from 1.4% in Q3FY25
Net NPA: 0.43%, down from 0.5% YoY
Net Interest Margin (NIM): 3.46% (excluding ₹7 bn tax refund)

📊 Other KPIs

Return on Assets (RoA): 1.9%
Return on Equity (RoE): 14.4%
Capital Adequacy Ratio: 19.6% (Tier 1: 17.2%)
Liquidity Coverage Ratio: 119%
Credit Cost: 29 bps (Q4FY25)

🧩 4. Subsidiaries – Performance Overview

Subsidiary	FY25 PAT (₹ Cr)	YoY Growth	Comments
HDB Financial	₹5.3 bn	Up 20%+	Loan book up 18.5%, NIM 7.6%, GNPA 2.26%
HDFC Life	₹4.8 bn	Up 16%	AUM ₹3.4 tn, VNB margin 27%
HDFC AMC	₹6.4 bn	Up 20%	Total income up 20%, AUM ₹7.7 tn
HDFC Securities	₹2.5 bn	Flat	Strong profitability with ₹141.3 EPS

💹 5. Valuation Snapshot @ CMP ₹1,907

Metric	Value
P/B	~2.8x (based on FY25 BVPS ₹682)
P/E (TTM)	~20.5x (EPS ₹92.8)
Dividend Yield	1.15% (₹22 DPS)
Debt/Equity	0.74
Total Debt/Assets	14.01%

🔮 6. Outlook – Near-Term & Long-Term

Near-Term (1–2 Quarters)

Tailwinds: Credit growth rebound, margin stability, retail loan traction
Headwinds: Higher credit costs, rural stress, macro uncertainties

Long-Term (12–24 Months)

Strong CASA franchise, integration synergies from HDFC Ltd merger
Continued leadership in retail and mortgage segments
Digital + physical distribution advantage (9,455 branches)

🚀 Summary for Investors

HDFC Bank delivered a stable and resilient FY25, balancing strong deposit growth, moderate loan expansion, and solid profitability. While GNPA slightly ticked up v/s last year but cooled off v/s last quarter, asset quality remains best-in-class. Subsidiaries continue to contribute meaningfully, and the valuation at CMP ₹1,907 offers reasonable entry points for long-term investors.

This blog does not constitute investment advice, and readers are advised to conduct their own due diligence. The author of this blog does hold a position in HDFC Bank at the time of writing. Investments in securities are subject to market risks. Past performance is not indicative of future returns.

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Piyush Patel

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