At the robust end of FY25, India’s leading private banks, HDFC Bank, ICICI Bank, and Yes Bank, reported solid performances, reflecting resilience despite a cautious macroeconomic environment.
HDFC Bank: Steady Profit Growth Amid Marginal Asset Quality Pressure
HDFC Bank, the largest private sector lender, posted a 6.7% year-on-year rise in standalone net profit for the January-March 2025 quarter, reaching ₹17,616 crore, compared to ₹16,512 crore a year earlier. While total income stayed nearly flat at ₹89,488 crore, net interest income (NII) rose to ₹77,460 crore, up from ₹71,473 crore.
The bank’s advances increased 7.7% YoY to ₹27.73 lakh crore, led by a 9% growth in retail loans and 12.8% growth in commercial and rural banking loans, although corporate loan growth contracted by 3.6%. Meanwhile, deposit growth remained strong at 14.1% YoY, with time deposits showing notable momentum.
Despite the healthy financials, asset quality saw some deterioration: gross NPAs edged up to 1.33% from 1.24% in the same quarter last year. The board has recommended a ₹22 per share dividend for FY25.
ICICI Bank: Strong Earnings Driven by Core Business and Non-Interest Income
ICICI Bank reported an impressive 15.7% YoY jump in consolidated net profit to ₹13,502 crore for Q4 FY25. On a standalone basis, the net profit rose 18% YoY to ₹12,630 crore, beating analyst expectations.
The bank’s NII grew 11% YoY to ₹21,193 crore, while non-interest income (excluding treasury gains) soared 18.4% YoY to ₹7,021 crore, underlining the strength in diversified income streams. Provisions stood at ₹891 crore, reflecting a cautious but stable provisioning strategy.
This solid operational performance highlights ICICI’s continued focus on risk management, retail expansion, and digital transformation initiatives.
Yes Bank: A Remarkable Turnaround Continues
Yes Bank capped off a recovery year by posting a 63% surge in standalone net profit, reaching ₹738 crore in Q4 FY25. The net interest income rose 5.7% YoY to ₹2,276.3 crore, beating Street estimates.
The bank showed improvements in asset quality, with net NPAs declining to 0.3% from 0.5% sequentially, while gross NPAs remained stable at 1.6%. Advances grew 8.1% YoY to ₹2.46 lakh crore, and deposits expanded by 6.8% YoY.
Yes Bank’s Q4 performance underscores its successful restructuring efforts post-crisis, focusing on strengthening its balance sheet and regaining depositor trust.
Sector Outlook: Optimistic But Watchful
The consistent earnings momentum across India’s top private lenders reflects robust credit demand, better margin management, and improved operating leverage. However, rising interest rates, regulatory scrutiny, and global uncertainties remain areas to watch closely heading into FY26.
Investors will closely monitor how these banks manage asset quality, maintain deposit growth, and adapt to evolving fintech and regulatory trends.
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