HDFC Bank announced on Saturday that it has reported a 6.7% year-on-year (Y-o-Y) rise in standalone net profit to Rs 17,616 crore for the January–March quarter of the financial year 2024–25 (Q4FY25), driven by growth in net interest income (NII) and lower provisions.

The bank has recommended a dividend of Rs 22 per share of face value Rs 1 each for FY25.

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HDFC Bank’s NII rose a little over 10% Y-o-Y to Rs 32,065.8 crore in the quarter under review, despite advances growing at a low-teen rate. The bank’s other income stood at Rs 12,003 crore. It reported a net interest margin (NIM) of 3.54% on total assets and 3.73% on earning assets. NIM is a key measure of a bank’s profitability.

The bank’s operating profit fell 9.4% Y-o-Y to Rs 26,537 crore in Q4FY25, compared to Rs 29,274 crore in Q4FY24. Provisions and contingencies declined sharply by 76% Y-o-Y to Rs 3,193 crore. Asset quality improved, with the gross non-performing assets (NPA) ratio dropping by 9 basis points over Q3FY25 to 1.33%, while the net NPA ratio stood at 0.43%.

Gross advances grew 5.4% Y-o-Y to Rs 26.43 trillion. Within this, retail loans grew 9% Y-o-Y, commercial and rural banking loans rose 12.8% Y-o-Y, and corporate and wholesale loans increased 3.6% Y-o-Y.

The bank’s deposit base expanded 14.1% Y-o-Y to Rs 27.14 trillion as of March 31, 2025. Current account and savings account (CASA) deposits grew 3.9% Y-o-Y, while time deposits increased 20.3% Y-o-Y, resulting in CASA deposits comprising 34.8% of total deposits.