HDFC Bank, India’s largest private lender, reported a mixed financial performance of hdfc bank q4 result, marked by a dip in operating profit but a resilient net profit that outpaced market forecasts. The results highlight the bank’s ability to navigate challenges through improved asset quality and cost management.
Operating Profit Pressured by Lower Other Income, Higher Costs
HDFC Bank’s operating profit fell 9.2% year-on-year (YoY) to ₹26,537 crore in Q4, driven by a sharp 34% decline in other income to ₹12,027 crore and a 4.3% rise in expenses to ₹60,364 crore. The drop in other income was partly attributed to the sale of its stake in subsidiary HDFC Credila Financial Services. In March 2024, the bank sold 14.01 crore equity shares in Credila for ₹9,552 crore, booking a one-time gain of ₹7,341 crore. This transaction led Credila to cease being a subsidiary effective March 19, 2024.
Net Profit Rises 7% on Lower Provisions, Strong NII Growth
Despite operational headwinds, HDFC Bank’s net profit climbed 6.9% YoY to ₹17,616 crore, surpassing Bloomberg analysts’ estimates of ₹16,908 crore. This growth was supported by a significant 76% reduction in provisions and contingencies to ₹3,193 crore, alongside a 10% YoY rise in net interest income (NII) to ₹32,066 crore. The bank’s core net interest margin (NIM) stood at 3.46%, bolstered by a ₹7,000 crore income tax refund, while NIM on interest-earning assets improved to 3.73%.
Asset Quality Shows Steady Improvement
The bank’s asset quality strengthened further, with gross non-performing assets (GNPA) declining to 1.33% as of March 31, 2024, from 1.42% in the previous quarter. Net NPAs also improved, dropping to 0.43% from 0.46% in Q3. This reflects HDFC Bank’s disciplined risk management amid a challenging macroeconomic environment.
Focus on Sustainable Growth: Credit-Deposit Ratio Targets
HDFC Bank’s credit-to-deposit (CD) ratio eased to 96.5%, down from over 100% a year earlier, signaling a strategic shift toward liquidity conservation. CEO Sashidhar Jagdishan emphasized the bank’s goal to align the CD ratio with pre-merger levels of 85–90% by FY27, aiming for sustainable growth following its merger with parent Housing Development Finance Corporation (HDFC) in 2023.
Analysts Remain Optimistic
Market experts have lauded the bank’s ability to balance growth and stability. The sharper-than-expected decline in provisions and robust NII growth underscore its operational resilience. However, investors are closely monitoring the bank’s ability to maintain margins amid rising competition and evolving regulatory norms.
About Hdfc Bank
HDFC Bank Limited, India’s largest private sector bank by assets and market capitalization, reported a mixed yet resilient performance for the fourth quarter (Q4) of FY24, balancing operational challenges with improved profitability and asset quality. The results underscore the bank’s critical role as a Domestic Systemically Important Bank (D-SIB), a designation by the Reserve Bank of India (RBI) that highlights its “too big to fail” status alongside peers like SBI and ICICI Bank.
Looking Ahead
While HDFC Bank navigates post-merger integration and macroeconomic pressures, its focus on optimizing costs, improving deposit mobilization, and sustaining asset quality positions it to capitalize on India’s expanding credit demand. The Q4 performance reinforces its reputation as a stalwart in India’s banking sector, even as challenges persist.
Hdfc Bank Stock Update:
HDFC Bank opened on 9th May 2025 at ₹1,910.10 and reached an intraday high of ₹1,919.00 before slipping to a low of ₹1,886.80. It closed at ₹1,893.30, down ₹35.20 or 1.83% from its previous close of ₹1,928.50. The stock saw substantial trading activity with a volume of 85.94 lakh shares, amounting to a turnover of ₹1,628.61 crore. Despite the dip, the stock has shown a 30-day gain of 7.07% and is trading below its 52-week high of ₹1,978.90 but well above its 52-week low of ₹1,426.80, indicating ongoing investor interest amid short-term volatility.