💰 Financial Performance

Revenue Growth by Segment

Standalone Total Income grew to INR 3,46,149 Cr in FY25 from INR 3,07,582 Cr in FY24 (Doc 25). Net Interest Income (NII) grew 13.0% YoY to INR 1,22,670.1 Cr in FY25 (Doc 27). Retail Advances grew 9% YoY to INR 13,75,769 Cr (Doc 5). Retail Mortgage advances grew 8% YoY to INR 8,35,656 Cr (Doc 28). Fee income grew 8.91% YoY (excluding transaction gains) to INR 31,898.6 Cr (Doc 27).

Geographic Revenue Split

Domestic operations comprise the vast majority of business with 9,455 branches as of March 31, 2025 (Doc 4). International presence includes 3 overseas branches (Dubai, Bahrain, Hong Kong) and 2 representative offices (UAE, Kenya) (Doc 4). Specific % revenue split by geography not disclosed.

Profitability Margins

Net Interest Margin (NIM) was 3.48% for FY25 (Doc 27) and moderated to 3.3% in Q2 FY26 (Doc 2). Return on Assets (RoA) was 1.8% in FY25 compared to 2.0% in FY24 (Doc 23). Standalone Profit After Tax (PAT) for FY25 was INR 67,347 Cr, up from INR 60,812 Cr in FY24 (Doc 20).

EBITDA Margin

Not applicable for banking; Cost-to-Income ratio was 40.5% in FY25 compared to 40.2% in FY24 (Doc 8). Operating expenses rose to INR 68,174.9 Cr from INR 63,386.0 Cr (Doc 27).

Capital Expenditure

Not disclosed as a single CapEx figure; however, the bank added 719 new branches and 201 ATMs/CRMs in FY25 (Doc 8). IT spending is noted as a driver of higher infrastructure expenses (Doc 8).

Credit Rating & Borrowing

Maintains 'Stable' outlook from ICRA and CRISIL (Doc 14, 17). Borrowings as a % of Total Liabilities stood at 13% in Q2 FY26, down from 21% in Q1 FY25 (Doc 7). HDFC Limited's legacy borrowings of INR 2,87,923 Cr are being managed, with 15% due by FY27 (Doc 5).

⚙️ Operational Drivers

Raw Materials

Not applicable for banking. Primary 'inputs' are Deposits (CASA and Term Deposits) and Equity Capital.

Import Sources

None

Key Suppliers

None

Capacity Expansion

None

Raw Material Costs

Interest expenses rose to INR 68,174.9 Cr in FY25 (Doc 8). Cost of funds is impacted by the decline in CASA share and competition for low-cost deposits (Doc 2).

Manufacturing Efficiency

Not applicable. Branch productivity is indicated by a network of 9,455 branches servicing a massive retail and corporate base (Doc 3).

Logistics & Distribution

Not applicable for banking; distribution is handled via 9,455 branches and digital platforms (Doc 3).

📈 Strategic Growth

Growth Strategy

Focus on semi-urban and rural expansion (9,455 branches total); strategic digital transformation to enhance customer engagement; leveraging analytics for corporate cross-selling; and shoring up the CASA base over the medium term (Doc 2, 3, 6).

Products & Services

Retail banking (Personal loans, Mortgages, Credit cards), Wholesale banking (Corporate loans), Treasury operations, Insurance (Life/General), Asset Management, and Broking (Doc 3, 4, 19).

Brand Portfolio

HDFC Bank, HDB Financial Services, HDFC Securities, HDFC Life, HDFC ERGO, HDFC AMC (Doc 10, 11).

New Products/Services

Launched new products across UPI, TATA, and Swiggy in the Payments Business; issued 62 lakh new credit cards in FY25 (Doc 28).

Market Expansion

Expansion into semi-urban and rural areas; added 719 branches in FY25 (Doc 3, 8).

Market Share & Ranking

Largest private sector bank in India; 14.4% market share in advances and 12.0% in deposits as of March 31, 2025 (Doc 12).

Strategic Alliances

Partnerships with TATA and Swiggy for co-branded credit cards (Doc 28).

🌍 External Factors

Industry Trends

Increasing competition for low-cost deposits; shift toward digital banking; and systemic importance of D-SIBs (Doc 2, 25).

Competitive Landscape

Competes with other private and public sector banks; holds 36.1% of private sector bank advances (Doc 12).

Competitive Moat

None

Macro Economic Sensitivity

Sensitive to interest rate cycles (NIM impact) and macro environment deterioration (Doc 14).

Consumer Behavior

Shift toward digital offerings and UPI-based payments; issued 2.38 crore cards in force (Doc 5, 28).

Geopolitical Risks

Identified as a factor that could impact asset quality and fresh slippages (Doc 14).

⚖️ Regulatory & Governance

Industry Regulations

Identified as a Domestic Systemically Important Bank (D-SIB) by RBI; maintains CRAR of 19.55% against regulatory requirements (Doc 20, 25).

Environmental Compliance

ESG Rating of 73 (Leader); Environment score 77; target to be carbon neutral by FY32 (Doc 19, 29).

Taxation Policy Impact

Bank collected Direct Tax (CBDT) of INR 6,08,278.22 Cr and Indirect Tax (CBIC) of over INR 5,15,558.20 Cr in FY25 (Doc 6).

⚠️ Risk Analysis

Key Uncertainties

CD ratio peaked at 110% post-merger (moderated to 105% in FY25); pressure on NIMs; and potential stress in unsecured retail segments (Doc 12, 14).

Geographic Concentration Risk

Primarily concentrated in India with 9,455 branches; international operations are limited to 3 branches and 2 offices (Doc 4).

Third Party Dependencies

Not disclosed for suppliers; however, acts as a third-party distributor for mutual funds and insurance (Doc 3).

Technology Obsolescence Risk

Mitigated by 'strategic digital transformation' and 'higher spend on IT' (Doc 6, 8).

Credit & Counterparty Risk

Gross NPAs at 1.33% and Net NPAs at 0.43% as of March 31, 2025 (Doc 20). Gross Stage 3 assets for HDB Financial Services at 2.81% (Doc 10).