The fourth-quarter results for the fiscal year 2024-25 of two of India’s largest private sector banks, HDFC Bank and ICICI Bank, have been announced, showcasing their financial performance in the January-March 2025 period. Here’s a detailed look at their key financial highlights:
HDFC Bank’s Q4 Performance
HDFC Bank, India’s largest private sector lender, reported a net profit of ₹17,616 crore for the fourth quarter of FY25, marking a growth of 6.7% year-on-year (YoY). The bank’s net interest income (NII), the difference between the interest earned and the interest paid, saw a healthy increase of 10.3% YoY, reaching ₹32,070 crore. The total income for the quarter stood at ₹89,488 crore. Â
In terms of asset quality, HDFC Bank witnessed a slight deterioration, with gross Non-Performing Assets (NPAs) rising to 1.33% of gross loans as of March 31, 2025, compared to 1.24% in the same period last year. Similarly, net NPAs increased to 0.43% from 0.33% YoY. However, the bank’s Capital Adequacy Ratio (CAR) remained strong at 19.6% under Basel III guidelines. The board of directors has recommended a dividend of ₹22 per equity share for FY25. Â
ICICI Bank’s Q4 Performance
ICICI Bank, the second-largest private sector bank in India, reported a robust 18% YoY increase in its standalone net profit, which stood at ₹12,630 crore for the fourth quarter of FY25, up from ₹10,708 crore in the corresponding period of the previous fiscal year. The bank’s core net interest income (NII) also saw a strong growth of 11% YoY to ₹21,193 crore, driven by a 13.3% expansion in the loan book and a marginal increase in the net interest margin (NIM) to 4.41%. Â
ICICI Bank demonstrated an improvement in asset quality, with the gross NPA ratio declining to 1.67% at the end of March 2025, compared to 1.96% in December 2024 and 2.16% in March 2024. The net NPA ratio also improved to 0.39%. The board has recommended a dividend of ₹11 per equity share for FY25. Â
Key Comparisons and Market Impact
While both banks have shown positive growth in net profit and NII, ICICI Bank exhibited a higher percentage increase in net profit compared to HDFC Bank. ICICI Bank also boasted a higher net interest margin (NIM) at 4.41% compared to HDFC Bank’s 3.54%. In terms of asset quality, ICICI Bank showed a more significant reduction in gross NPAs during the quarter. Â
Following the announcement of these results, both HDFC Bank and ICICI Bank saw their shares rally on Monday, April 21, 2025, contributing to a surge in the Nifty Bank index, which hit a new record high. Analysts have largely maintained a positive outlook on both banking stocks, with some even raising their target prices, citing the strong Q4 performance and positive future prospects. Â
In conclusion, both HDFC Bank and ICICI Bank have delivered strong fourth-quarter results, showcasing their resilience and growth in the Indian banking sector. While HDFC Bank maintains its position as the largest private lender with a significant balance sheet, ICICI Bank has demonstrated stronger profitability growth and improved asset quality in this period. Both banks have also rewarded their shareholders with substantial dividend payouts.
