HDFC Bank (HDFCBANK) investor relations material

Executive summary

• Net profit for the quarter ended June 30, 2025, rose 12.2% year-over-year to ₹181.6 billion, driven by strong core banking operations and significant gains from the HDB Financial Services IPO.

• Consolidated profit after tax was ₹162.6 billion, with robust contributions from key subsidiaries including HDFC Life, HDFC ERGO, and HDB Financial Services.

• The Board declared a special interim dividend of ₹5 per share and approved a 1:1 bonus share issue, subject to approvals.

• Asset quality remained stable, with gross NPA at 1.40% and net NPA at 0.47%.

• Average deposits grew 16% year-over-year, while advances/AUM growth improved to 8% in the June quarter.

Financial highlights

• Standalone net interest income grew 5.4% year-over-year to ₹314.4 billion; net interest margin was 3.35%.

• Other income surged to ₹217.3 billion, including ₹91.3 billion transaction gains from HDBFS IPO.

• Operating expenses rose to ₹174.3 billion; cost-to-income ratio (ex-transaction gains) was 39.6%.

• Provisions and contingencies increased sharply to ₹144.4 billion, including ₹90.0 billion floating and ₹17.0 billion contingent provisions.

• Gross advances grew 6.7% year-over-year to ₹26,532 billion; deposits rose 16.2% to ₹27,641 billion.

Outlook and guidance

• Management expects sequential improvement in loan growth, aiming to match system growth in FY26 and exceed it in FY27.

• Margins may see short-term fluctuations due to rate cycle lag effects but are expected to stabilize over time.

• The bank continues to enhance provision buffers and remains optimistic on credit growth, supported by strong capital adequacy.

• Asset quality outlook remains stable, with no visible stress across segments.

• Forward-looking statements caution on macroeconomic, geopolitical, and regulatory risks.