HDFC bank Q4 results: From net-interest income to asset quality; here's what to expect from earnings

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, Axis Bank, rallied more than 10%, and ICICI Bank, 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 were ₹ 25,27,900 crore for the March 2025 quarter, 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, a growth of around 5.7% over ₹ 7,84,400 billion for the March 2024 quarter, and around 1.4% compared to ₹ 8,176 billion 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 expected to impact the bottom line. The net interest income is also expected to grow in high single digits of 5-7% as the bank is favorably placed in terms of its advances portfolio. Bank’s efforts on improving the loan to deposit ratio is expected to show results in coming quarters.

On the asset quality front, the bank is expected to continue with its superior asset quality. Furthermore, the Bank’s low exposure to the micro-finance segment is expected to benefit the overall improvement in the asset quality. Bank’s Retail: 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 watch for investors.