HDFC Bank shares rise over 1% after Q4 net profit rises 7% YoY, NII grows 10%

HDFC Bank shares rose 1.4% to a day’s high of Rs 1,933.30 on the BSE on Monday, April 21, after the bank reported a 6.7% rise in net profit year-on-year and a 10% increase in net interest income (NII) for the fourth quarter ended March 2025.

HDFC Bank Q4 Results

The bank’s profit after tax was reported at Rs 17,620 crore, while the NII number stood at Rs 32,070 crore.

The bank reported a net interest margin (NIM) of 3.54% on total assets and 3.73% on interest-earning assets for the quarter.

The bank has declared a dividend of Rs 22 per share for its shareholders.

In addition, HDFC Bank reported a net revenue of Rs 44,090 crore for Q4FY25, down from Rs 47,240 crore in Q4FY24. Other income (non-interest revenue) stood at Rs 12,030 crore, with fee and commission income rising to Rs 8,530 crore from Rs 7,990 crore in the same period last year.

On the asset quality front, gross non-performing assets (GNPAs) stood at 1.33% of gross advances as of March 31, 2025, up from 1.24% a year ago but lower than 1.42% in the December 2024 quarter. Net NPAs were reported at 0.43% of net advances.

As of March 31, 2025, HDFC Bank’s gross advances reached Rs 26.43 lakh crore, reflecting a year-on-year growth of 5.4%. Overseas advances accounted for 1.7% of the total. The bank’s Capital Adequacy Ratio (CAR) rose to 19.6%, up from 18.8% in the same period last year.

HDFC Bank share price target

Motilal Oswal: Buy| Target price: Rs 2,200| Upside potential: 15.4%

Motilal Oswal Financial Services (MOFSL) has reiterated a ‘Buy’ rating on HDFC Bank, setting a target price of Rs 2,200, following the lender’s steady performance in the March quarter.

The brokerage noted that earnings were in line with expectations, with a beat in Net Interest Income (NII). A key positive was the improvement in core margins, which rose 3 basis points quarter-on-quarter.

Looking ahead, MOFSL projects loan growth of 10% in FY26 and 13% in FY27, supported by strong fundamentals and stable asset quality. It has raised earnings estimates by 3% for FY26 and 5% for FY27.

For FY27, the brokerage expects HDFC Bank to post a return on assets (RoA) of 1.9% and a return on equity (RoE) of 14.6%.

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