HDFC Bank Q3 FY25 earnings Preview: Steady asset quality, guidance on deposit and loan growth key focus area

HDFC Bank Q3 FY25 earnings Preview: HDFC Bank – the country’s top lender by market capitalisation is set to release its financial results for the fourth quarter and full year on April 19. The spotlight primarily is on the bank’s guidance on loan and deposit growth as evolving domestic macros now offer the country’s central bank enough room to focus on growth and hence cut interest rates going ahead.

HDFC Bank Q4 Business Update Highlights

• In its fourth-quarter business update, the lender pointed that its average advances under management grew to Rs 26,95,000 crore as against Rs 25,12,500 crore, registering an over 7 per cent growth.
• Average CASA deposits grew 5.7 per cent year-on-year to Rs 8,28,900 crore during the March quarter.
• Sequentially, advances and deposits saw marginal increases over the December quarter levels.

Earnings estimate:

According to Zee Business Research estimates:

The research desk expects the lender to report steady earnings for the March quarter.

• Net Interest Income (NII): Expected at Rs 30,760 crore, up 5.5 per cent YoY from Rs 29,076 crore.
• Profit After Tax (PAT): Anticipated at Rs 17,030 crore, up 3 per cent YoY from Rs 16,511 crore.
• Gross Non-Performing Assets (GNPA): Likely to remain flat at 1.4 per cent QoQ.
• Net NPA (NNPA): Estimated to decline slightly to 0.4 per cent as against 0.5 per cent in the previous December quarter.
• Cost ratios: Amid focus on improvement in operational efficiency- the lender’s cost ratios will remain steady

Furthermore, while advances at the lender are expected to grow by 3.8 per cent during the review period, deposits are seen advancing by 14.6 per cent year-on-year. The research desk noted that the country’s biggest private sector lender is still facing post demerger-related headwinds.

Also, the lender noted that it continues to focus on recovery in margins as well as strategic liability management.

HDFC Bank Q3FY25 earnings

The bank reported 2.21 per cent increase in standalone net profit to Rs 16,735.50 crore in Q3 FY25 as against Rs 16,372.54 crore posted in Q3 FY24. Total income also rose 7.02 per cent YoY to Rs 87,460.44 crore in the quarter ended 31 December 2024.