HDFC Bank Q4: Net Profit Climbs 6.7 Per Cent, However Operating Profit Falls 9.4 Per Cent

HDFC Bank, India’s largest private sector lender, reported a 6.7 per cent year-on-year rise in standalone net profit for the fourth quarter of the 2024-25 fiscal year (FY25), with the figure reaching Rs 17,616 crore. On a quarter-on-quarter basis, the bank registered a 5.3 per cent increase in net profit.

However, despite the rise in bottom line, the bank posted a decline in operating performance. Operating profit dropped by 9.4 per cent to Rs 26,537 crore, compared to Rs 29,274 crore recorded in the same quarter last year, the lender revealed via an official filing on Saturday.

Asset Quality Improves; NPAs Show Mixed Trend

The private bank also saw some improvement in its asset quality metrics. The gross non-performing asset (NPA) ratio declined to 1.33 per cent as of March 31, 2025, down from 1.42 per cent at the end of the December 2024 quarter. However, it was slightly higher when compared to 1.23 per cent reported on March 31, 2024.

The Reserve Bank of India defines Non Performing Assets in India as any advance or loan that is overdue for more than 90 days. A decrease in NPAs shows that the asset quality of the bank has improved.

In absolute terms, gross NPAs came in at Rs 35,222.64 crore, slightly lower than the Rs 36,018.58 crore reported at the end of December 2024. This was higher, however, than the Rs 31,173.32 crore recorded in the fourth quarter of the previous fiscal year. The bank's net NPA ratio stood at 0.43 per cent for the January-March quarter, compared to 0.33 per cent in the corresponding quarter a year earlier.

Net interest income (NII), a key indicator of core banking performance, saw an annual rise of 10.3 per cent, reaching Rs 32,066 crore in Q4FY25.

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Dividend

The Board of Directors recommended a dividend of Rs 22 per equity share of Re 1 each (2200%) for FY25. “The record date for determining the eligibility of members entitled to receive the said dividend is Friday, June 27, 2025,” the bank said in the filing.

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