HDFC Bank Limited shares saw a notable rise in early trading on Friday, April 4, 2025, after the bank released its business update for the fourth quarter of the financial year. As India’s largest private sector lender, HDFC Bank Limited reported steady growth across key parameters, including advances, deposits, and profitability. Here is a detailed breakdown of the bank’s performance and what it means for investors.
Share price climbs after business update
Shares of HDFC Bank Limited rose 1.62% to ₹1,823.85 apiece on the National Stock Exchange (NSE) at 9:20 AM. The rally followed the release of its business performance update for the March quarter, which reflected strong operational metrics despite challenging economic conditions.
Advances under management show steady growth
The bank’s period-end advances under management stood at ₹27.73 lakh crores as of March 31, 2025, marking a 7.7% growth from ₹25.75 lakh crores in the previous year. Meanwhile, gross advances increased by 5.4% year-on-year to ₹26.43 lakh crores from ₹25.07 lakh crores, demonstrating healthy credit demand and HDFC Bank Limited’s continued focus on expanding its lending portfolio.
Deposits witness double-digit growth
On the deposit front, HDFC Bank Limited reported strong momentum. Its period-end average deposits rose by 14.1% year-on-year to ₹27.14 lakh crores as of March 2025, up from ₹25.63 lakh crores in the same period last year. Sequentially, deposits increased by 5.9%, reflecting improved depositor confidence and savings behaviour.
CASA performance remains stable
The bank’s Current Account and Savings Account (CASA) deposits also recorded moderate growth. Period-end CASA deposits stood at ₹9.44 lakh crores, rising 3.9% year-on-year and 8.2% sequentially. Average CASA deposits for the fourth quarter of FY2024–25 stood at ₹8.28 lakh crores, a 5.7% increase from ₹7.84 lakh crores in the corresponding quarter of the previous year.
Time deposits drive overall deposit growth
A key highlight of the update was the robust growth in time deposits. As of March 31, 2025, time deposits stood at ₹17.7 lakh crores, a significant 20.3% increase over ₹14.71 lakh crores reported the previous year. Quarter-on-quarter, they rose by 4.7% from ₹16.91 lakh crores as of December 31, 2024. This trend indicates a shift in depositor preference toward fixed-return products amid volatile market conditions.
Profitability metrics reflect stable performance
In the third quarter of FY2024–25, HDFC Bank Limited posted a standalone profit after tax of ₹16,736 crores, up 2.2% from ₹16,372.54 crores in the December quarter of the previous fiscal year. Net interest income (NII) increased by 7.6% to ₹30,655 crores, while total interest income also rose 7.6% to ₹76,006 crores. Interest expenses grew in tandem, up 7.7% to ₹45,353 crores, in line with industry-wide cost-of-funds trends.
Investor takeaway
HDFC Bank’s fourth-quarter update highlights its resilience and consistent growth approach in a dynamic financial landscape. For those considering share market investment within the financial sector, this bank's robust deposit base, expanding loan book, and stable profitability present a strong case for confidence, reinforcing its leadership in India’s banking space. The market’s positive response suggests investor confidence remains strong as the bank enters the new financial year.
Summing up
HDFC Bank's Q4 update reflects strong fundamentals, with steady growth in advances, deposits, and stable profitability, reaffirming its position as a leader in India's private banking sector. Investor sentiment remained upbeat following the update.
At 11:20 AM on April 4, 2025, the bank's shares were trading 1.96% higher at ₹1,830.00 on the NSE, compared to the previous close of ₹1,794.75. The positive market response highlights investor confidence and signals the long-term potential for those seeking reliable opportunities in the financial sector.
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