Nifty Bank up 2%, hits record high on strong Q4 results by HDFC, ICICI Bank

In the past five trading days, HDFC Bank and ICICI Bank shares have outperformed the market by surging up to 11 per cent

Nifty Bank index hit a record high of 55,205 on Monday, gaining nearly 2 per cent on the National Stock Exchange (NSE) in the intraday trade, after sector giants HDFC Bank and ICICI Bank reported better-than-expected earnings for March 2025 quarter (Q4FY25). The index surpassed its previous high of 54,467.35, which it touched on September 26, 2024.

 

Shares of HDFC Bank (₹1,950.7) and ICICI Bank (₹1,436) gained 2 per cent each, hitting their respective new highs on the NSE in intraday trade. In the past five trading days, these stocks have outperformed the market by gaining up to 11 per cent, as compared to a 5-per cent rise in Nifty 50 index.

 

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At 09:23 AM, Nifty Bank index, the top gainer among sectoral indices eligible in derivatives, was up 1.4 per cent at 55,057.35, as compared to 0.25 per cent rise in the Nifty 50.  Follow Stock Market Live Updates Today

 

AU Small Finance Bank, Axis Bank, IDFC First Bank, State Bank of India, IndusInd Bank, Punjab National Bank, and Canara Bank were among other gainers from the Nifty Bank index which were trading higher in the range of 1 per cent to 3 per cent.  HDFC Bank Q4FY25 result update

 

HDFC Bank continued to deliver steady revival in earnings in Q4FY25, with advance growth at 6.4 per cent year-on-year (Y-o-Y) and 4 per cent quarter-on-quarter (QoQ) to ₹24.63 trillion, driven by retail and CRB segment, while corporate pie de-grew 3.6 per cent Y-o-Y. Net interest income (NII) grew 10.3 per cent Y-o-Y, led by 11 bps Q-o-Q improvement in margins at 3.54 per cent. The lender reported improvement in asset quality as gross non-performing assets (NPAs) ratio at the end of Q4FY25 dropped 9 basis points over Q3FY25 to 1.33 per cent. Net NPAs stood at 0.43 per cent, down 3 bps Q-o-Q.  Brokerage views on HDFC Bank

 

Credit growth outlook remains encouraging, supported by a calibrated shift in funding cost and mix. Margins are expected to stay within a broad range, despite near-term volatility owing to repo-linked resets. Though fundamentals remain healthy, recent run-up in valuation limits upside in near term, ICICI Securities said in a note.

 

According to Motilal Oswal Financial Services (MOFSL), HDFC Bank posted a steady quarter with in-line earnings and a beat in NII, while the core margin improved 3bps Q-o-Q. Further, NIM (including IT refunds) rose 11bp Q-o-Q to 3.54 per cent in Q4FY25. Business growth was healthy while aligning with the bank's strategy to reduce the C/D ratio consistently. Further, HDFC Bank continues to hold healthy provisions (floating + contingent) of ₹25,900 crore, or 1.0 per cent of loans.  

 

The brokerage firm said they factor in loan growth of 10 per cent/13 per cent for FY26/FY27. The gradual retirement of high-cost borrowings, along with an improvement in operating leverage, will support return ratios over the coming years.

 

ICICI Bank Q4FY25 result update  Meanwhile, ICICI Bank yet again reported a healthy performance despite the prevailing challenging environment, led by a robust net interest margin (NIM) expansion, healthy other income, contained opex, and controlled provisions.

 

"NIM expansion was strong and significantly ahead of our estimates, driving a beat in NII. The bank's continuous investment in technology has enabled consistent productivity gains, thus helping the bank maintain cost ratios. The business mix has tilted toward the high-yielding portfolio, with the bank maintaining a balanced growth across the segments. Secured asset quality remained stable (excl. agri) with no signs of stress, leading to an improvement in the GNPA ratio," Motilal Oswal Financial Services said in the result update.