HDFC Bank Q4FY25 Performance Overview

Market Movement and Bank's Performance

Despite a broader decline in the Indian stock market, HDFC Bank's share price rose by 2% on April 4, 2025. This increase came after the bank reported a substantial business update for the quarter ending March 2025 (Q4FY25). Investors responded positively to the bank's continued growth in loans and deposits, alongside its ongoing efforts to recalibrate its balance sheet following the merger with HDFC Ltd.

Financial Performance

Gross Advances

• As of March 31, 2025, HDFC Bank's gross advances stood at ₹26.43 lakh crore, reflecting a 5.4% year-on-year growth from ₹25.07 lakh crore in March 2024.
• On a sequential basis, gross advances rose 4% from ₹25.42 lakh crore reported at the end of Q3FY25.

Total Deposits

• Total deposits reached ₹27.14 lakh crore, marking a 14.1% increase year-on-year from ₹23.79 lakh crore in Q4FY24.
• Compared to Q3FY25, deposits grew 5.9% from ₹25.64 lakh crore.

Loan Securitization

• The bank securitized loans worth ₹57,000 crore in FY25, with ₹10,700 crore coming from the March quarter alone.

Deposit Growth Trends

• The average deposit base expanded 15.9% year-on-year and 3.1% quarter-on-quarter to ₹25.28 lakh crore.
• CASA deposits grew 5.7% year-on-year and 1.4% sequentially to ₹8.29 lakh crore.

Strategic Focus on Credit-Deposit Ratio

HDFC Bank's management has emphasized that FY25 will focus on consolidation, with loan growth trailing the banking sector. This measured strategy aligns with the bank's objective of stabilizing its credit-deposit (CD) ratio to pre-merger levels.

The bank aims to align its loan growth with the industry in FY26 and expects to surpass system-wide growth in FY27 once its balance sheet and deposit base are fully optimized post-merger.

Stock Performance Overview

• The stock price rose 2%, reaching an intraday high of ₹1,830.
• It is 2.6% below its peak of ₹1,880, recorded in December 2024.
• Over the last year, the stock has surged 28% from its 52-week low of ₹1,430.15 (May 2024).
• Monthly movement:
  • March 2025: Increased 5.5%
  • February 2025: Rose 2%
  • January 2025: Declined 4%

Summary

HDFC Bank showcased strong financial growth in Q4FY25, marked by increased loans and deposits. The bank is actively adjusting its post-merger credit-deposit strategy to align with broader industry growth trends in the coming years. Despite broader market challenges, the stock has demonstrated resilience, reflecting investor confidence in its financial stability and long-term strategic plans.