Deposits grew 2.5 times faster than loans during the year—a deliberate move aimed at lowering the credit-to-deposit (CD) ratio and reducing reliance on high-cost borrowings. As of March 31, 2025, the CD ratio stood at 96%, down sharply from the post-merger peak of around 110%. Simultaneously, the share of high-cost borrowings declined to 14%, reflecting prudent financial management and a stronger liability profile, said Sashidhar Jagdishan, Managing Director & CEO of HDFC Bank, in the company’s latest annual report.
With just 5% of the country’s bank branches, the bank now commands an 11% share of total banking deposits. In FY25 alone, it captured 14.6% of the incremental deposit market share—achieved through operational intensity and execution excellence rather than aggressive pricing, Jagdishan noted.
“We consciously calibrated our loan growth in FY25 to reposition the balance sheet. Aided by disciplined pricing and a focus on quality, we were successful in achieving our objectives,” he added.
FY25 marked the first full financial year since the merger of HDFC Ltd into HDFC Bank on July 1, 2023. During the year, HDFC Bank reported a 10.7% increase in net profit, rising to ₹67,347.4 crore as of March 31, 2025. Net Interest Income (NII) grew by 13.0% to ₹1,22,670.1 crore, while the Net Interest Margin (NIM) stood at 3.48%.
The bank’s balance sheet expanded by over 8%, reaching ₹39,10,199 crore. Gross non-performing assets (GNPA) remained low at 1.33% of gross advances. Advances rose 5.4% to ₹26,19,609 crore, while deposits grew 14.1% to ₹27,14,715 crore.
The mortgage portfolio—a key component of the merger—has grown from strength to strength and is now the largest in the country. It has also catalysed increased cross-sell opportunities across the HDFC Bank Group. Over 95% of new home loan customers now open CASA accounts with the bank, with more than half opting for additional product offerings.
In FY25, the bank also introduced Natural Resource Management as a new focus area, aiming to drive solutions in renewable energy, solid waste management, afforestation, and soil and water conservation.
Looking ahead, HDFC Bank plans to grow its advances in line with the broader banking system in FY26, and to outpace the industry from FY27 onwards.
The bank expanded its physical footprint significantly, adding over 700 branches during FY25. As of March 31, the total branch count stood at 9,455, with a large portion located in semi-urban and rural markets. The bank reaffirmed its commitment to branch-led expansion as a cornerstone of customer engagement and service delivery.
On the human capital front, HDFC Bank maintained its headcount while improving efficiency and reducing attrition, which fell from 26.9% in FY24 to 22.6% in FY25. The bank’s gender ratio improved to 26%, up from 18.09% in FY21, as part of its broader Diversity, Equity, and Inclusion (DE&I) efforts.
The bank’s culture transformation initiative has now reached over 27,000 managers, emphasizing values such as empathy, agility, and innovation. Internal surveys reflected strong employee engagement across all levels.
Despite global uncertainties, HDFC Bank remains bullish on India’s economic outlook, which continues to be among the fastest-growing in the world. With successful merger synergies, a sharp improvement in its credit-deposit ratio, and strong deposit mobilisation, the bank is confident about the next leg of growth.
“To use a cricketing analogy: in FY25, we focused on taking singles—playing it safe, steady, and strategic. Now, with the groundwork laid and momentum building, we are ready to start hitting boundaries,” Jagdishan said.