HDFC Bank Share Price in Focus on Union Budget 2025

HDFC Bank continues to hold its position as the largest private sector bank in India in terms of both advances and deposits. As of Q2FY25, its net advances stood at ₹24,951 billion, demonstrating its strong lending capabilities. The bank maintains a vast retail presence with a market-leading share across multiple product categories. At the end of Q2FY25, HDFC Bank operated 9,092 branches and employed 2,07,000 people, underscoring its expansive reach and operational scale.

HDFC Bank Share Price Movement on Budget Day

On February 1, 2025, HDFC Bank’s share price exhibited high volatility in response to the Union Budget announcement. The stock:

• Opened at ₹1,697.50
• Made an intraday high of ₹1,713 
• Dropped to an intraday low of ₹1,676.05
• Was trading at ₹1,685 (-0.80%) at 1:54 PM

This fluctuation reflected market reactions to budget announcements, investor sentiment, and broader economic indicators.

Leadership Change at HDFC Bank

In a significant leadership development, Mr V. Chakrapani, who was appointed Group Head – Change Agent on April 1, 2024, is set to retire on January 31, 2025. Over a 30-year tenure, he played a crucial role in shaping the bank’s growth and expansion across diverse business lines. The bank acknowledged his instrumental contributions in driving strategic transformation initiatives.

HDFC Bank Q3FY25 Financial Performance

HDFC Bank posted a 2.2% year-on-year (Y-o-Y) increase in net profit to ₹16,735.50 crore for Q3FY25, despite slower core income growth and higher slippages from agricultural loans.

Key Financial Metrics

• Net Interest Income (NII): ₹30,650 crore (+7.7% Y-o-Y)
• Other Income: ₹11,450 crore (Flat Y-o-Y)
• Mark-to-Market Gain on Investments: ₹70 crore (vs ₹1,470 crore in Q3FY24)
• Net Interest Margin (NIM): 3.43%, unchanged Y-o-Y but lower than 3.5% in Q2

Provisioning and Asset Quality Trends

HDFC Bank saw an improvement in provisioning, but asset quality deteriorated:

• Provisions and Contingencies: ₹3,150 crore (vs ₹4,220 crore in Q3FY24)
• Gross Non-Performing Assets (GNPA): ₹36,019 crore (vs ₹34,251 crore in Q2FY25 and ₹31,012 crore in Q3FY24)
• GNPA Ratio: 1.42% (vs 1.36% in Q2FY25 and 1.26% in Q3FY24)

The rise in non-performing assets (NPAs) signals increased stress in loan quality, particularly from the agriculture segment.

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