India’s leading private sector bank, HDFC Bank, will be announcing its Q4FY25 results on Saturday. The HDFC Bank share price is up 7.18% YTD and claimed new record high levels on Thursday at ₹1,919 apiece on the NSE. The share rallied ahead of important Q4 and FY25 results update.
Shares of HDFC Bank gained traction in the last week as investors shifted their focus to sectors that are less prone to tariff and external impacts. The private sector bank stood as the top sectoral gainer with 6.94% gains for the week, as key private banks like IndusInd Bank and Axis Bank rallied more than 10%, while ICICI Bank and HDFC Bank jumped more than 5% in a similar period.
Q4FY25 Business Update
The Bank’s average advances under management were ₹26,95,500 crore for the March 2025 quarter, a growth of around 7.3% over ₹25,12,500 crore for the March 2024 quarter, and a growth of around 2.6% over ₹26,27,600 crore for the December 2024 quarter. Similarly, deposits rose to ₹25,27,900 crore for the March 2025 quarter, reflecting a growth of around 15.8% over ₹21,83,600 crore for the March 2024 quarter, and around 3.1% over ₹24,52,800 crore for the December 2024 quarter.
The Bank’s average CASA deposits were ₹8,28,900 crore for the March 2025 quarter, marking a growth of approximately 5.7% over ₹7,84,400 crore for the March 2024 quarter, and around 1.4% compared to ₹8,176 crore for the December 2024 quarter.
What to Look for in Q4FY25 Earnings
The earnings are expected to grow in the moderate range, as poor net-interest margins are anticipated to impact the bottom line. The net interest income is also projected to grow in high single digits, specifically 5-7%, as the bank is favorably positioned regarding its advances portfolio. The Bank’s ongoing efforts to improve the loan to deposit ratio are expected to yield results in the coming quarters.
On the asset quality front, the bank is anticipated to maintain its superior asset quality. Additionally, the Bank’s low exposure to the micro-finance segment is expected to contribute positively to the overall improvement in asset quality. The Bank’s Retail to Wholesale mix in the advances stands at 58:42, which indicates high yields on investment.
Management’s commentary on garnering deposits in the declining interest rate scenario will be a key point to observe for investors.