ICICI Bank, HDFC Bank, YES Bank report Q4 earnings; here are key takeaways

ICICI Bank, HDFC Bank and YES Bank were among the prominent banks which reported their January-March quarter results on Saturday, April 19. The country's largest and second largest private sector lenders HDFC Bank and ICICI Bank respectively reported double digit growth in net interest income (NII).

HDFC Bank Q4 earnings takeaways

Net interest income (NII) of the bank increased to ₹32,066 crore for the reporting quarter, up 10.3% YoY as compared to ₹29,080 crore in the December quarter.

HDFC Bank's board recommended a dividend of ₹22 per share.

The bank's Gross Non-Performing Assets (Gross NPA) during the January-March quarter of FY25 stood at ₹35,222.6 crore as against ₹36,018.6 crore in the third quarter. The GNPA ratio for the reporting quarter stood at 1.33% as against 1.42% in Q3 FY25 and 1.24% in Q4 FY24.

Net NPA ratio was at 0.43% for the March quarter as compared to 0.46% in the December quarter of FY25 and 0.33% in the year-ago period (Q4 FY24).

Net interest margin (NIM) stood at 3.54% on total assets and 3.73% on interest-earning assets.

HDFC Bank's average deposits rose 15.8% YoY to ₹25.28 lakh crore in the fourth quarter of FY25 as against ₹21.84 lakh crore in Q4 FY24. The lender's average deposits stood at ₹24.53 lakh crore in Q3 FY25.

Operating profit of the bank declined by 9.4% YoY in the March quarter to ₹26,537 crore as against ₹29,274 crore in the year-ago period.

Provisions of the lender plunged by as much as 76.4% in Q4 FY25 to ₹3,193 crore, down from ₹13,511 crore in the March quarter of FY24.

ICICI Bank Q4 earnings takeaways

ICICI Bank's net interest income, or the difference between interest earned and interest expended, rose 11% in the January-March period to ₹21,192.94 as against ₹19,092.80 crore in the year-ago period.

The bank's provisions for bad loans advanced 24% to ₹891 crore in the March quarter from ₹718 crore in the same period last year.

The Mumbai-based lender's asset quality showed improvement in the March quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.67% as against 1.96% in the previous quarter and 2.16% in the same period last year.

Its net NPA came in at 0.39% marginally lower than 0.42% in the year-ago period.

In absolute terms, ICICI Bank's gross NPA was 24,166.18 crore as against ₹27,961.68 in the year-ago period.

YES Bank Q4 earnings takeaway

YES Bank's net interest income or the difference between interest earned on loans and expended on deposits came in at ₹2,276.36 crore, up nearly 6% from ₹2,153 crore in the corresponding period last year.

The Mumbai-based lender's asset quality remained stable at the end of March quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in unchanged at 1.60% sequentially. In absolute terms gross NPA stood at ₹3,935.61 crore.

Its net NPA however showed a slight improvement at 0.3% from 0.5% in the previous quarter.

The strong Q4 performance of major private sector banks like HDFC Bank, ICICI Bank, and YES Bank highlight the resilience and growth momentum in India’s banking sector. With double-digit growth in net interest income, improving asset quality and robust deposit growth, these results reflect a healthy credit environment, strong consumer demand and better operational efficiency, analysts said.

Banks demonstrated prudent risk management in March quarter, as indicated by declining or stable NPAs and lower provisioning, particularly in the case of YES Bank. Dividend announcements from HDFC Bank and ICICI Bank further signal confidence in their balance sheet strength, analysts noted.