Posted on April 4, 2025, by Niftynews
Shares of HDFC Bank rose by 2% on April 4, 2025, defying the broader market’s downturn after the bank posted strong results for the quarter ended March 31, 2025 (Q4FY25). The private sector lender’s performance, with notable growth in both loan advances and deposits, drew positive market sentiment and helped HDFC Bank Share Price climb despite a challenging market environment.
Strong Operational Performance in Q4FY25 Boosts HDFC Bank Share Price
The HDFC Bank share price experienced a jump following the bank’s report of robust operational growth in Q4FY25. The bank’s gross advances grew by 5.4% year-on-year to ₹26.43 lakh crore, compared to ₹25.07 lakh crore in the same quarter last year. This steady increase in gross advances suggests solid demand for loans despite the cautious market sentiment.
In addition to strong loan growth, HDFC Bank reported an impressive 14.1% year-on-year increase in total deposits, reaching ₹27.14 lakh crore. On a sequential basis, deposits rose by 5.9%, showcasing the bank’s ability to attract and retain deposits in a competitive banking landscape. These figures reflect HDFC Bank’s consistent strategy for balanced growth in both loan advances and deposits.
Strategic Focus on Credit-Deposit Ratio
A key aspect of HDFC Bank’s performance is its cautious strategy to recalibrate its credit-deposit (CD) ratio post-merger with its parent company, HDFC Ltd. The bank has been focusing on bringing its elevated CD ratio back to pre-merger levels, which contributed to its slower-than-average loan growth. Management previously indicated that FY25 would be a year of consolidation, and the results reflect this strategic approach to maintain long-term balance sheet health.
Looking ahead, HDFC Bank has set ambitious goals to match system-wide loan growth in FY26 and outpace the market by FY27 once it has fully realigned its balance sheet and deposit base. This measured approach to growth, combined with a solid Q4 performance, has boosted investor confidence, leading to an uptick in HDFC Bank Shares.
Stock Price Trend and Performance
Despite the overall downturn in the Indian stock market, HDFC Bank Share Price defied the trend, climbing as much as 2% to ₹1,830. It is now just 2.6% away from its peak of ₹1,880, which was achieved in December 2024. Over the past year, the stock has risen by 21%, and from its 52-week low of ₹1,430.15 in May 2024, it has advanced by 28%. Additionally, the stock rose 5.5% in March 2025, following a 2% gain in February.
This strong upward movement in HDFC Bank Shares comes despite a negative sentiment in broader market indices, highlighting the bank’s resilient performance even in uncertain times.
Technical View on HDFC Bank Shares
From a technical standpoint, HDFC Bank Shares have shown strength in recent chart patterns. The stock faces resistance at ₹1,900, and a strong support base has formed at ₹1,780. Analysts suggest that HDFC Bank shareholders hold onto their shares, with a short-term target of ₹1,900 to ₹1,925, while maintaining a stop loss at ₹1,780.
For fresh investors, the stock remains an attractive option, with short-term targets of ₹1,925, provided they maintain the stop loss at ₹1,780. The overall technical outlook suggests positive momentum, backed by solid fundamentals from the recent results.
Conclusion: Why HDFC Bank Share Price Is Surging
The strong quarterly results reported by HDFC Bank have given investors renewed confidence in the stock, driving a 2% increase in its share price on April 4, 2025. Despite the broader market decline, the bank’s steady progress in loan and deposit growth, along with its focus on recalibrating its post-merger balance sheet, has positioned it for future growth.
As the bank works towards aligning its credit-deposit ratio and achieving its long-term goals, HDFC Bank Share Price is expected to maintain upward momentum, providing a potential opportunity for investors looking for stable growth in the banking sector.
