HDFC Bank Q4FY25: Strong rise in stock before results, know what is the estimate:

The stock of the country's largest private bank HDFC Bank is witnessing a tremendous rise. HDFC Bank will release the results for the fourth quarter (January-March) of the financial year 2025 on April 19. The bank's profit and net interest income (NII) are expected to grow in single digits in the March quarter. Currently, the bank's loan growth is sluggish and there is also pressure on the margin.

According to Moneycontrol's 5 brokerage estimates, HDFC Bank's NII is expected to grow 7.3% year-on-year (YoY) to Rs 31,200 crore, from Rs 29,077 crore in Q4FY24. The bank's profit may grow 3.3% year-on-year to Rs 17,072 crore, from Rs 16,512 crore in the same quarter last year.

Among brokerages, Sharekhan has made the most bullish estimate. Whereas, YES Securities has projected the slowest growth for HDFC Bank. Know further what is the expectation about HDFC Bank's results:-

1. Stable asset quality: Most analysts agree that the bank will report lower slippage in Q4. This can be seen mainly due to the decline in slippage in the Kisan Credit Card (KCC) segment. According to Phillip Capital, the bank's net non-performing asset (NNPA) ratio is estimated to be 0.47% in Q4FY25, up from 0.46% in the previous quarter.

2. Margin slowdown: HDFC Bank's margins are expected to remain largely flat in the quarter. According to Elara Capital estimates, net interest margins (NIMs) are expected to be around 3.5% in Q4FY25, up from 3.4% in Q4FY24.

3. Loan growth slowdown: Loan growth is also expected to remain sluggish during the quarter. Elara Capital estimates that the loan book may grow 3.4% annually to Rs 25.6 lakh crore in Q4FY25, up from Rs 24.8 lakh crore in the same quarter last year.

What to look for in HDFC Bank Q4 results? This time, the focus in HDFC Bank results will be on the credit-to-deposit (CD) ratio. Apart from this, investors will keep a close eye on the guidance regarding margin and overall growth of the bank.