HDFC Bank is set to report its Q4 FY25 earnings later today, alongside a possible announcement on dividend payouts. As India’s largest private sector lender, the bank’s results are closely watched by markets and investors for cues on sector health, margin trajectory, and future outlook.
Key metrics to watch in Q4 FY25
Brokerages expect moderate growth in Net Interest Income (NII) for the quarter. The bank had earlier reported NII of Rs 28,470 crore in Q3 FY25, and Q4 is expected to remain largely in line, reflecting steady but slower growth.
Net Interest Margins (NIMs) are likely to see a mild contraction. According to Motilal Oswal, the margins could come under pressure in the near term owing to slower loan growth and tighter funding costs. Nuvama expects a decline of 2–5 basis points in Q4 NIMs.
Net profit for the quarter is projected to be around Rs 17,000 crore, largely flat on a sequential basis. This would mark a stable finish to the financial year, although analysts note limited upside in earnings due to margin compression.
Loan growth and asset expansion will also be key focus areas. While credit growth is likely to stay around 12% YoY, deposit growth may remain soft, as per Nuvama Institutional Equities. However, improved system liquidity following the RBI’s recent injections could provide some tailwinds.
HDFC Bank shares have delivered a muted 1% gain during the January–March 2025 period, trailing some of its sector peers. The stock’s Q4 performance may set the tone for investor sentiment in the banking space in the coming weeks.
