Case Study — Understanding HDFC Bank’s Balance Sheet

A simple breakdown of HDFC Bank’s assets, deposits, and risks—so investors can quickly judge its real financial strength.

Smita

Dec 03, 2025

Hello and welcome back to The Finance Lens!

I will be honest, bank balance sheets used to intimidate me.

The first time I looked at one, it felt like walking into a room full of people speaking a language I had never heard.

But once you get the hang of the basics, it feels surprisingly logical.

So let’s walk through HDFC Bank’s FY25 balance sheet, not like analysts in grey suits, but like normal people trying to make sense of where the country’s biggest private bank is heading.

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1. The Big Picture: Total Assets

₹39.1 lakh crore (up 8.1%)

This number basically says:
“This is everything HDFC Bank owns or has a claim on.”

It is mostly loans, investments, cash, etc. The growth is steady, not flashy, and honestly, I kind of like that.

After the HDFC Ltd merger, I did not expect fireworks anyway. This looks more like a year of getting things in order.

2. Deposits: Where the Money Comes From

₹27.14 lakh crore (up 14.1%)

Deposits are a bank’s oxygen. And HDFC Bank seems to be breathing just fine.

The interesting bit? Deposits grew much faster than loans.

This is like stocking up your pantry before inviting guests; it is preparation, not hesitation.

3. Loans (Advances): The Bank’s Core Business

₹26.19 lakh crore (up 5.4%)

Loan growth slowed down this year, not because the bank is struggling, but because it is playing it safe post-merger.

The Loan-to-Deposit Ratio fell to 96%, which is actually healthier than before.

Think of it like slowing down your car for a few seconds to shift into a better gear.

You lose a bit of speed temporarily, but the engine runs better after.

4. Asset Quality: “Are You Lending Wisely?” Test

Gross NPA: 1.33%

This is one of those numbers analysts love to brag about.

And honestly, HDFC Bank has earned the bragging rights.

Any NPA number close to 1% for a giant like this is basically saying:

“We know who we are lending to, and we know how to get our money back.”

As someone who has seen smaller banks struggle with NPAs, this consistency is reassuring.

5. Profits & Margins: The Heartbeat of the Bank

PAT: ₹67,347 crore (up 10.7%)
ROA: 1.91%
ROE: 14.6%
NIM: 3.48%

These numbers show a bank that knows its craft.
Nothing crazy, nothing shaky—just reliable.

ROA close to 2% is the mark of a strong bank globally.
ROE above 14% after a merger? Even better.

I sometimes compare this to cricket: Not every innings is about hitting sixes.

Sometimes a series of smart singles builds the foundation for a big total later.
HDFC Bank seems to be playing exactly that kind of innings.

6. Capital Adequacy: The Safety Cushion

CAR: 19.6%

This is the bank’s version of saying, “Relax, we can handle shocks.”

Well above the requirement.
Investors like this. Regulators like this.
Even customers subconsciously sleep better because of this.

7. What the Overall Balance Sheet Is Really Saying

When you zoom out, the story becomes clearer:

* It is a clean-up and consolidation year.

Not a sprint year.

* The bank is rebuilding a stronger base.

Healthy deposit growth, lower dependence on expensive borrowings.

* The merger with HDFC Ltd has settled into a rhythm.

* Asset quality remains top-tier.

This is the part I personally value the most.

* Profitability held up even while the bank shifted gears.

That is not easy to pull off.

Final Thoughts — What Should an Investor Take Away?

If you look at FY25 expecting fireworks, you might be disappointed.
But if you see it as a year where HDFC Bank tied its shoelaces, fixed its posture, and took a deep breath before running again, you will understand the story better.

Personally, I prefer banks that take a pause when they need to.
It shows maturity and long-term thinking.

And given the balance sheet today, HDFC Bank seems ready to accelerate again from FY26 onward.

Slow, steady, but confident, that’s the vibe this balance sheet gives.

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