HDFC Bank Q4 FY25 Results: ₹17,616 Crore Profit, ₹22 Dividend (2,200%); Asset Quality Update

HDFC Bank Q4 FY25 Results: ₹17,616 Crore Profit, Declares ₹22 (2,200%) Dividend; Update on Asset Quality

Introduction:

HDFC Bank, the leading private sector lender in India, has disclosed its earnings for the period of Q4 FY25 (January-March 2025) with a net profit increase of 7% year-on-year, amounting to ₹17,616 crore. In addition, the bank announced a dividend of ₹22 per share which makes the total declared dividend for FY 2024-25 a staggering 2,200%. Those wanting to appear on the record as shareholders to receive the dividend need to hold shares until the cut-off date of June 27, 2025.

Key Financial Highlights:

Net Profit:

HDFC Bank’s net profit for Q4 FY25 was ₹17,616 crore which surpasses the expected estimate of ₹17,072, marking a YoY increase of 7%. Furthermore, this profit also reflects a sequential growth of 5.3% over the previous quarter. Such consistent performance highlights the increased earnings growth of the bank.

Dividend Declaration:

The board of HDFC Bank has declared a dividend of ₹22 which equates to a staggering 2,200% dividend announcement based on the bank’s face value of ₹1 per share. The stockholders, to qualify as willing recipients for this dividend must hold the shares till 27th June 2025.

Enhancements On Income:

The net income for this quarter is Rs. 89,488 crores which is lower than the previous years. Interest income, on the other hand, increased substantially, growing to ₹77,460 crores from ₹71,473 crores in Q4 FY24, indicating that our lending operations continue to perform well.

Update On Reporting Quality:

HDFC Bank has reported robust earnings; however there was a mild decline in asset quality. The gross NPA ratio climbed to 1.33% as of March 31 2025, relative to 1.24% one year prior. This increase in NPAs indicates that there are a few more loans than before which are likely to default, although asset quality remains acceptable. The net NPA ratio has also increased slightly to 0.43% from 0.33% the year before.

Additional Important Measurements

Net Interest Margin (NIM):

The bank’s NIM was at 3.54% on total assets and 3.73% on interest earning assets. Without considering an income tax refund of Rs.700 crores, the core NIM which is a measure of profitability was 3.46%, underscoring effective operational performance.

Deposits:

HDFC Bank’s total deposit balance is growing steadily, recording a 15.8% YoY increase to reach ₹25.28 Lakh Crore by March 2025. CASA (Current and Savings Accounts) deposits increased 5.7% YoY, which is a healthy 34.8% of total deposits.

Advances:

HDFC has also seen growth in gross advances by 5.4% YoY. Retail loans, along with commercial and rural banking loans saw the most growth at 9%, and 12.8% respectively. Corporate loans, however, experienced a decline of 3.6%, indicating previous demand trends may be changing.

Capital Adequacy:

The bank’s Capital Adequacy Ratio (CAR) is comfortably above the regulatory limit sitting at 19.6%, which is a healthy 11.7% above the required 11.7%. This leaves HDFC Bank in a position to absorb any financial shocks with great ease.

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Conclusion:

HDFC Bank’s Q4 FY25 results show solid performance with substantial net profit growth along with a generous dividend payout. While there has been a dip in asset quality, the financial health of the bank remains strong. The dividend of ₹22 per share serves as an optimistic sign for investors and, coupled with the capital adequacy ratio, positions the bank favorably for growth.

HDFC Bank remains one of the major players in the Indian banking sector, supported by a healthy loan book, increasing deposits, and steady NIM. With the investors waiting for the record date for the dividend, the steady income of the bank along with the consistent dividend payout is expected to maintain the bank’s focus among the investors in the coming quarters.