HDFC BANK LIMITED - Quarterly Result Update Q4'425

HDFC Bank Q4 Results: Profit, NII beat estimates, final dividend at Rs.22 per share HDFC Bank has reported 7% growth in net profit to Rs 17616.14 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted healthy 10% growth in net interest income (NII), while the core fee income of the bank improved 7% in Q4FY2025. The Net Interest Margin (NIM) of the bank rose to 3.46% in Q4FY2025 compared to 3.44% in the corresponding quarter of previous year. On business front, the bank as has posted 10% growth in business with 5% rise in loan book. The asset quality of the bank was stable in Q4FY2025. Bank has substantially reduced the credit to deposit ratio to 97.4% at end March 2025 from 105.4% at end March 2024. The CASA ratio of the bank has improved on sequential basis to 34.8% at end March 2025 from 34.0% end December 2024, while declined from 38.2% at end March 2024. Dividend The Board also recommended a dividend of Rs. 22 per equity share of Re. 1/- each fully paid up (i.e. 2200 %) for the FY 2024-25, subject to the approval of the shareholders. The record date for determining the eligibility of members entitled to receive the said dividend is Friday, June 27, 2025. Asset quality improves: The bank has improved asset quality in Q4FY2025. The fresh slippages of loans declined on sequential basis to Rs 7500 crore in Q4FY2025 compared with 8800 crore in previous quarter and Rs 7300 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 5000 crore, while the write-off of loans was at Rs 3300 crore in Q4FY2025. Provision coverage ratio was steady at 68% at end March 2025 compared to 68% a quarter ago and declined from 74.00% a year ago. The capital adequacy ratio of the bank stood at 19.6% with Tier I ratio at 17.7% at end March 2025. The risk weighted assets of the bank has increased 8% YoY to Rs 2660000 crore end March 2025,