HDFC Bank Limited Revenue & Financials

The number that matters most isn't revenue — it's the net interest margin compression. Pre-merger, HDFC Bank ran NIMs above 4.1%. Post-merger, they've settled around 3.4-3.6%. That 50-70 basis point difference on a $250+ billion balance sheet translates to roughly $1.5 billion in annual income that hasn't materialized yet. The market is essentially betting that NIMs recover to 3.8-4.0% within three years as CASA deposits grow. If they don't, the stock's premium valuation becomes hard to justify. FY2025 delivered $25.6 billion in total income and $7.9 billion in net profit — a 17% year-over-year profit growth that looks healthy until you realize much of it came from the mechanical addition of HDFC Ltd's earnings rather than organic improvement. The cost-to-income ratio sits around 40%, which is efficient by Indian standards but higher than the sub-38% levels the bank maintained pre-merger. The balance sheet now carries roughly $300 billion in total assets, making it India's largest private bank by a wide margin. Return on equity hovers near 16% — respectable, but below the 18-20% that investors grew accustomed to during the Puri era.