HDFC Bank in focus: Should you buy, sell, or hold India’s largest private bank’s stock after Q3 results? EXPLAINED | Stock Market News

HDFC Bank Q3 Results: HDFC Bank announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Wednesday, January 22, reporting a rise of 2.2 per cent in its standalone net profit to ₹16,735.50 crore, compared to ₹16,372 crore in the corresponding period last year.

Net interest income (NII)—the difference between interest earned and paid—rose eight per cent in the third quarter of current fiscal to ₹76,006.8 crore compared to ₹70,582.61 crore in the year-ago period. India’s largest private sector bank’s profit was restricted by slower loan growth in Q3FY25.

Also Read: HDFC Bank Q3 results: Net profit rises 2% to ₹16,735.5 crore, net interest income jumps 8% YoY

HDFC Bank Q3 Results

Along with HDFC Bank’s core income, total expenses for the October to December quarter rose 7.55 per cent to ₹62,460.04 crore on a year-on-year (YoY) basis compared to ₹58,072.35 crore a year ago. HDFC Bank’s asset quality weakened marginally in the December quarter. 

The gross non-performing assets (NPA) for the quarter stood at ₹36,018.58 crore, up 16.15 per cent YoY from ₹31,011.67 crore in Q3FY4. The percentage of gross NPAs to gross advances grew to 1.42 per cent from 1.26 per cent in the corresponding quarter of the last financial year.

The net NPA or bad loans during the December quarter jumped by 51.2 per cent YoY to ₹11,587.54 crore compared to ₹7,664.10 crore in the same quarter last year. The percentage of net NPAs to net advances rose to 0.46 per cent from 0.31 per cent YoY.

Also Read: HDFC Bank Q3 result: Profit inches up by 2% YoY, net NPAs rise; 8 key highlights

HDFC Bank said its average deposits grew nearly 16 per cent YoY to ₹24,52,800 crore during Q3FY25, while average CASA (Current Account and Savings Account) deposits grew six per cent YoY to ₹81,7600 crore.

“Core net interest margin (NIM) was at 3.43 per cent on total assets and 3.62 per cent based on interest-earning assets,” said HDFC Bank. The operating expenses increased 7.2 per cent YoY in the December quarter to ₹17,110 crore from ₹15,960 crore in the same period last year.

HDFC Bank’s merger with parent HDFC in 2023 added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under greater pressure to increase the pace of raising deposits or slow loan growth. Reportedly, HDFC has been shrinking its retail loan portfolio as it seeks to improve its credit-deposit ratio, which shot up after the merger.

Also Read: HDFC Bank Q3 results 2025: Date, time, expectations to preview. Details you MUST know

HDB Financial Services reported a net profit of ₹470 crore, HDFC Life Insurance ₹410 crore, the asset management arm ₹640 crore, and securities ₹270 crore. On Wednesday, shares of HDFC Bank settled 1.42 per cent higher at ₹1,665.05 apiece on the BSE. HDFC Bank shares have yielded nearly 15 per cent returns in the last one year. However, the banking stock has dropped over seven per cent year-to-date (YTD) in 2025.

HDFC Bank Q3 Results: Should you buy, sell, or hold the stock tomorrow?

According to D-Street experts, HDFC Bank Ltd reported steady Q3FY25 results, with net profit meeting market expectations. In its Q2FY25 commentary, management outlined a strategy to lower the LDR to pre-COVID levels, resulting in slower credit growth compared to industry standards while focusing on deposit accumulation, which is evident in Q3FY25’s performance. 

“Despite muted credit expansion, steady deposit growth aligns well with the bank’s long-term goals. Although asset quality slightly declined, HDFC Bank has consistently maintained strong asset quality through disciplined underwriting and risk-calibrated lending,” said Abhishek Pandya, Research Analyst, StoxBox.

According to the expert, NIMs faced pressure due to CASA accretion challenges. Still, reducing high-cost borrowings and improving operating efficiency are expected to enhance return ratios in the coming years. “Asset quality and credit growth will be key priorities, along with the bank’s strategic response to the RBI’s draft circular on lending overlap among group entities. Overall, HDFC Bank’s Q3FY25 results reflect a balanced performance amidst evolving macroeconomic conditions,” added Pandya.

Also Read: HDFC Life share price surges over 9.5% on strong Q3 performance. Should you buy?

Technical View

HDFC Bank’s share price is currently in ₹1,610 to ₹1,730 apiece range. So, market analysts advise those with HDFC Bank shares in their portfolio to maintain a strict stop loss at ₹1,610 and wait for the fresh breakout at ₹1,730 on a closing basis. Once the stock breaks above ₹1,730 decisively, HDFC Bank shareholders can upgrade their trailing stop loss to ₹1,670 apiece. 

“Fresh buying is advised only above ₹1,730 for the short-term target of ₹1,800 per share mark. However, after the breakout at ₹1,730, fresh buyers must maintain a strict stop loss at ₹1,670,” said Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.