Shares of HDFC Bank climbed over 1.5 percent in early trade on Friday, April 4, defying the broader market downtrend, after the private sector lender posted a strong business update for the quarter ended March 2025 (Q4FY25). The market welcomed the bank’s steady progress on loan and deposit growth, along with its continued focus on recalibrating its post-merger balance sheet strategy.
Strong Operational Performance in Q4
HDFC Bank reported gross advances of ₹26.43 lakh crore as of March 31, 2025, registering a 5.4 percent year-on-year growth compared to ₹25.07 lakh crore a year earlier. On a sequential basis, gross advances rose 4 percent from ₹25.42 lakh crore reported at the end of the December 2024 quarter (Q3FY25).
The bank’s total deposits stood at ₹27.14 lakh crore, reflecting a 14.1 percent year-on-year growth from ₹23.79 lakh crore in Q4FY24. Sequentially, deposits rose by 5.9 percent over ₹25.64 lakh crore reported at the end of Q3FY25.
HDFC Bank also securitised ₹57,000 crore worth of loans in FY25, including ₹10,700 crore in the March quarter alone. The average deposit base expanded 15.9 percent year-on-year and 3.1 percent quarter-on-quarter to ₹25.28 lakh crore. Meanwhile, CASA deposits increased 5.7 percent year-on-year and 1.4 percent sequentially to ₹8.29 lakh crore.
Strategic Focus on Credit-Deposit Ratio
The management has previously indicated that FY25 would be a year of consolidation, with loan growth expected to lag behind the broader banking system. This cautious approach is part of HDFC Bank’s broader strategy to bring its elevated credit–deposit (CD) ratio back to pre-merger levels, following the merger with parent HDFC Ltd.
Looking ahead, the bank has guided that it will aim to match system-wide loan growth in FY26 and outperform in FY27, once it has realigned its balance sheet and deposit base.
