HDFC Financial institution’s revenue monetary yr stood at Rs 17,616 crore within the fourth quarter of 2024-25. That is 5 % development yr after yr after yr. Throughout this time the corporate’s margin has additionally elevated. The financial institution stored its working experiences below management. Provisioning and credit score prices had been additionally low. The asset high quality of the financial institution remained good. Within the monetary yr 2024-25, the financial institution’s earnings (EPS) rose 11 per cent on a year-on-year foundation. That is a lot lower than EPS development earlier than merger. EPS development for practically 20 years earlier than the merger was greater than 20 per cent on a yr -on -year foundation. Good development within the report FY25 HDFC Financial institution’s focus was on the steadiness sheet. It was drastically affected after the merger. Within the fourth quarter, the financial institution additionally took precautions about credit score bicycle/surroundings. As a consequence of this, the expansion of the mortgage was lower than the typical development of the business. Nonetheless, HDFC Financial institution’s deposit development was fairly good. Regardless of the strain on liquidity, the financial institution maintained the value self-discipline. HDFC Financial institution has additionally managed to compete with the rising competitors within the banking business. The whole variety of the involved information was reached 9400, the gross advans of the HDFC Financial institution elevated by 5.4 per cent on a yr -after -year foundation on the finish of March 2025. Retail mortgage development was 9 %. Business and rural banking development was 13 per cent. The expansion of company and different wholesale loans was 3.6 %. The expansion of unseen loans (private mortgage and bank cards) in retail was 10 per cent yr -on -year foundation. HDFC Financial institution opened 717 branches in FY25. As a consequence of this, the entire variety of HDFC Financial institution branches within the nation elevated to 9,400. Growing the variety of branches will assist HDFC Financial institution to take care of its market share. The ROA 1.9 per cent reached the Credit score-Dipozit (CD) ratio of HDFC Financial institution in 2025. In December 2023, it reached 110 per cent of peaks. This ratio has modified after merger. Liquidity protection ratio (LCR) was 119 per cent in March 2025, which might be thought of good. The financial institution’s earnings development was barely uninteresting in FY25. The financial institution has benefited from the deal with the deposit. Aside from this, the financial institution’s return on asset (ROA) was 1.9 per cent. HDFC Financial institution’s inventory has been higher than the inventory market in additional than the inventory market. Within the final one yr, HDFC Financial institution’s inventory has been returned 26 %. As compared, the return of Nifty was 8 per cent throughout this era, whereas financial institution Nifty returns had been 14 per cent. HDFC Financial institution’s valuation has elevated because of bounce in shares. Nonetheless, HDFC Financial institution shares are nonetheless buying and selling at a reduction in opposition to ICICI Financial institution. The query is whether or not HDFC Financial institution will have the ability to obtain probably the most priceless financial institution title once more? Additionally learn: Inventory Market: How a lot capital is critical to turn into a full-time dealer? Do it’s best to make investments? Now HDFC Financial institution shares are buying and selling FY27’s estimated e book worth. This consists of adjustable valuation of subsidiary. Contemplating the Return on Asset (ROA), the valuation appears appropriate. The financial institution has 1.9 % in ROE FY25. The IPO of HDB Monetary Providers can even have a optimistic affect on HDFC Financial institution shares. Nonetheless, it is not going to have a lot affect on the financial institution’s valuation. HDFC Financial institution’s return ratio is enticing. The valuation is sweet. The efficiency is repeatedly bettering. Buyers can put money into HDFC shares on the present worth. This funding must be for lengthy intervals.
