HDFC Bank’s shares surged by 2% in early trading on April 4, 2025, bucking the trend of a declining market. This uptick followed the bank’s impressive business update for the quarter ending March 2025 (Q4FY25), showcasing robust loan and deposit growth. Investors celebrated the bank’s strategic focus on refining its balance sheet in the wake of its recent merger.
Strong Q4 Operational Performance
In its latest report, HDFC Bank revealed gross advances of ₹26.43 lakh crore as of March 31, 2025, marking a 5.4% increase from ₹25.07 lakh crore a year prior. Additionally, there was a 4% rise in gross advances compared to the December 2024 quarter (Q3FY25), which saw total advances at ₹25.42 lakh crore.
- Total deposits climbed to ₹27.14 lakh crore, up 14.1% year-on-year from ₹23.79 lakh crore in Q4FY24.
- Sequentially, deposits grew by 5.9%, compared to ₹25.64 lakh crore in Q3FY25.
- The bank also securitized ₹57,000 crore of loans in FY25, with ₹10,700 crore happening in the March quarter alone.
The average deposit base expanded by 15.9% year-on-year and 3.1% quarter-on-quarter, reaching ₹25.28 lakh crore. Additionally, CASA deposits saw an increase of 5.7% year-on-year and 1.4% sequentially, totaling ₹8.29 lakh crore.
Strategic Focus on Credit-Deposit Ratio
HDFC Bank’s management has articulated that FY25 will serve as a year of consolidation, with anticipated loan growth lagging behind the broader banking sector. This strategy is designed to restore the bank’s elevated credit-deposit (CD) ratio to pre-merger levels, following its integration with HDFC Ltd. Looking ahead, the bank aims to align with system-wide loan growth in FY26 and exceed it by FY27, post-balance sheet realignment.
Stock Price Performance
The stock experienced a notable jump of 2%, peaking at ₹1,830, and is now only 2.6% shy of its all-time high of ₹1,880, reached in December 2024. Since hitting a 52-week low of ₹1,430.15 in May 2024, the banking stock has rebounded by 28%, and gained 21% over the past year. Notably, HDFC Bank shares rose by 5.5% in March, building on a 2% increase from February, although they dipped over 4% in January.
Technical Insights
According to Sumeet Bagadia, Executive Director at Choice Broking, HDFC Bank shares exhibit a strong technical outlook. They face resistance around ₹1,900, while establishing a solid base at ₹1,780. Investors currently holding shares are advised to maintain their positions with a stop-loss at ₹1,780, eyeing a short-term target of ₹1,900 to ₹1,925. For new investors, this could be an opportune moment to buy HDFC Bank shares, also targeting ₹1,925 with the same stop-loss strategy.
With a clear focus on growth and a solid market position, HDFC Bank is poised for continued success in the upcoming fiscal year.
