HDFC Bank reported a steady performance for the quarter ended March 31, 2025 (Q4FY25), with notable improvement in asset quality. The bank posted a 6.69% year-on-year (YoY) increase in net profit, which stood at ₹17,616 crore, driven by strong interest income and healthy operational efficiency.
The bank’s net interest income (NII) — the difference between interest earned and interest expended — rose 10.3% YoY, reflecting solid credit demand and stable margins. Total revenue and other income figures were not disclosed in the segment, but the overall earnings trajectory indicates continued momentum post-merger with HDFC Ltd.
On the asset quality front, HDFC Bank reported a significant improvement. Gross non-performing assets (GNPAs) as a percentage of total advances stood at 1.33% as of March 31, 2025, down from 1.42% in the previous quarter (December 31, 2024). When excluding non-performing assets in the agricultural segment, GNPAs stood at 1.13%, compared to 1.19% in Q3FY25.
Year-on-year, GNPAs showed a marginal uptick from 1.24% in Q4FY24 (1.12% excluding agri NPAs), which can be attributed to changes in portfolio mix following the merger.
The net non-performing assets (NNPAs) — a better indicator of the bank’s asset stress after accounting for provisioning — came in at 0.43% of net advances as on March 31, 2025, reflecting a strong provision coverage ratio and effective risk management.
The improvement in asset quality comes as a positive signal amid a competitive lending environment and ongoing macroeconomic uncertainties. The bank continues to maintain a healthy balance sheet supported by robust underwriting standards.
As part of its financial disclosure, HDFC Bank’s board has also recommended a dividend of ₹22 per equity share (face value ₹1), subject to shareholder approval at the upcoming annual general meeting.
Disclaimer: The above information is based on HDFC Bank’s official financial results and stock exchange filings. Investors are advised to consult their financial advisors before making any investment decisions.
