HDFC Bank shares are under attention following the Q4 update: Gross advances climb 5.4% yearly, while deposits rise 14%

HDFC Bank shares rose 2 percent in early trade on Friday, April 4, bucking the general market decline, as the private sector lender reported a good business update for the quarter ended March 2025 (Q4FY25). The market praised the bank’s consistent progress in loan and deposit growth and its sustained emphasis on recalibrating its post-merger balance sheet approach.

Strong operational performance in the fourth quarter:

HDFC Bank recorded gross advances of ₹26.43 lakh crore as of March 31, 2025, representing a 5.4 percent year-on-year increase from ₹25.07 lakh crore the previous year. HDFC Bank securitized ₹57,000 crore of loans in FY25, with ₹10,700 crore in the March quarter alone. The average deposit base increased by 15.9 percent year on year and 3.1 percent quarter on quarter to ₹25.28 lakh crore. CASA deposits climbed by 5.7% year on year and 1.4% sequentially to ₹8.29 lakh crore.

Strategic Focus on the Credit-Deposit Ratio:

The management has already said that FY25 will be a year of consolidation, with loan growth projected to lag behind the overall banking industry. This cautious approach is part of HDFC Bank’s overall objective to reduce its high credit-deposit (CD) ratio to pre-merger levels following its merger with parent HDFC Ltd. The stock increased by up to 2% to reach a high of ₹1,830 on the day. It is only 2.6 percent away from its top of ₹1,880, reached in December 2024. Meanwhile, it has risen 28% from its 52-week low of ₹1,430.15, reached in May 2024. The bank’s stock has climbed 21% in the last year. Furthermore, it increased by 5.5 percent in March, following a 2 percent advance in February. In January, it decreased more than 4%.

Expert Perspective:

“The technical chart pattern suggests that HDFC Bank shares are robust. They encounter opposition at ₹190 but have established a good foundation around ₹1780 each. HDFC Bank shareholders should hold the scrip with a stop loss of around ₹1780 for a short-term aim of ₹1900 to ₹1925. Sumeet Bagadia, Executive Director at Choice Broking, recommends that new investors buy HDFC Bank shares with a short-term objective of ₹1925 and a stop loss of ₹1780 to gain momentum.