HDFC Bank, India’s largest lender, saw its shares surge by 3% on April 4, following a positive business update for Q4 FY25. At 10:25 am, the bank's shares were trading at ₹1,830.5 on the BSE, reflecting a 2.05% increase from the previous session. The strong performance was attributed to solid growth in loans and deposits.
For the quarter ending March 31, 2025, HDFC Bank reported a 5.4% year-on-year (YoY) increase in total advances, reaching ₹26.4 lakh crore. Deposits saw an impressive 15.8% YoY growth, totaling ₹25.3 lakh crore. The bank’s current account-savings account (CASA) deposits rose 5.7% YoY to ₹8.3 lakh crore. Retail loans increased by 9%, while commercial and rural banking loans surged 12.8%. In contrast, corporate loans saw a decline of 3.6% YoY.
Sequentially, the bank's gross advances grew 4% from ₹25.4 lakh crore in Q3 FY25, while deposits rose 5.9%. The average advances under management stood at ₹26.95 lakh crore, marking a 7.3% YoY growth.
Brokerage firm Motilal Oswal praised HDFC Bank’s strong business growth, particularly noting the robust CASA deposit expansion, which boosted the CASA ratio to 34.8%. InCred Equities highlighted that growth was mainly driven by the commercial and rural banking segments, while wholesale loans continued to decline. Both brokerages maintained their positive outlook on the bank, with target prices reaching up to ₹2,150 per share.
