HDFC Bank Q3 Results 2025: India’s largest private-sector lender, HDFC Bank, released its financial results for the third quarter of FY25 on Wednesday, reporting a 2.2% year-on-year (YoY) increase in net profit to ₹16,736 crore. The bank also posted an 8% YoY growth in net interest income (NII), signaling steady performance despite minor challenges in asset quality.
HDFC Bank Q3 Results 2025: Key Financial Metrics
HDFC Bank’s total slippages during the quarter were reported at ₹8,800 crore, up from ₹7,800 crore in the preceding quarter.
Loan and Deposit Dynamics
HDFC Bank Q3 Results 2025: The bank’s loan-to-deposit ratio continues to face pressure following its 2023 merger with Housing Development Finance Corporation (HDFC). The merger brought a significant pool of loans but relatively fewer deposits, prompting the bank to focus on increasing its deposit base.
To address liquidity concerns, HDFC Bank has been scaling back its retail loan portfolio and offering loans for sale to improve its credit-deposit ratio. In Q3FY25, retail loans grew by 10.0%, while commercial and rural banking loans saw an 11.6% increase. However, corporate and other wholesale loans declined by 10.4%. Overseas advances constituted 1.8% of the total loan book.
Capital Adequacy and Distribution Network
HDFC Bank Q3 Results 2025: HDFC Bank’s total Capital Adequacy Ratio (CAR), as per Basel III norms, rose to 20.0% as of December 31, 2024, compared to 18.4% a year earlier. This is well above the regulatory requirement of 11.7%.
The bank also expanded its distribution network, operating 9,143 branches and 21,049 ATMs across 4,101 cities and towns as of December 31, 2024. Its workforce grew slightly to 2,10,219 employees, up from 2,08,066 in the previous year.
Stock Performance
Following the announcement of its Q3 results, HDFC Bank’s stock saw a positive market response. Shares closed 1.42% higher at ₹1,665.05 apiece on the Bombay Stock Exchange (BSE).
Challenges Ahead
HDFC Bank Q3 Results 2025: HDFC Bank faces the dual challenge of bolstering its deposit base while managing its loan growth. The bank’s efforts to shrink its retail loan portfolio and maintain liquidity through strategic measures will be closely monitored by analysts and investors in the coming quarters.
Outlook
With stable NIMs and a robust CAR, HDFC Bank remains on solid financial footing despite near-term challenges. The lender’s ability to manage its post-merger dynamics effectively will be a key determinant of its growth trajectory in the coming fiscal periods.