Indian Banks Report Mixed Earnings for Q4FY25 India's private banks reported a mixed set of results in the Q4 of FY25

The latest quarterly results underline the shifting landscape in India's banking sector. While established players like HDFC Bank and ICICI Bank continue to consolidate their leadership, others are navigating a tougher path, dealing with sectoral challenges and profitability pressures.

Axis Bank reported a net profit of INR 7,117 crore for Q4FY25, reflecting a 13 per cent quarter-on-quarter (QoQ) growth but remaining largely flat on a year-on-year (YoY) basis. In comparison, its net profit for Q4FY24 stood at INR 7,130 crore. The bank's net interest income (NII) rose 6 per cent year-on-year to INR 13,811 crore, with the net interest margin (NIM) holding steady at 3.97 per cent for the quarter.

RBL Bank's performance was more muted. Its net interest income for Q4FY25 stood at INR 1,563 crore with a strong NIM of 4.89 per cent. However, its full-year NII growth was seven per cent year-on-year to INR 6,463 crore, while the full-year NIM settled at 5.12 per cent. The bank's net profit plunged to INR 68 crore for the quarter and INR 695 crore for the full fiscal year, a sharp fall from INR 1,168 crore in FY24.

Meanwhile, HDFC Bank continued to show steady momentum, posting a net profit of INR 17,616 crore in Q4FY25, a year-on-year increase of 6.7 per cent. Its NII also rose by 10.3 per cent to INR 32,070 crore. The bank's NIM stood at 3.54 per cent on total assets and 3.73 per cent based on interest-earning assets, highlighting its stable income generation amid a competitive environment.

ICICI Bank delivered another strong quarter, registering an 18 per cent increase in net profits to INR 12,629.58 crore compared to INR 10,707.53 crore in the same period last year. Its interest income climbed 11.8 per cent year-on-year to INR 42,430.80 crore, showing continued growth across lending and investment activities.

Yes Bank showed notable improvement, with its Q4FY25 net profit surging 63.3 per cent year-on-year to INR 738 crore and up 20.6 per cent quarter-on-quarter. For the full year, the bank reported a net profit of INR 2,406 crore, a remarkable 92.3 per cent jump compared to FY24. Yes Bank's NII for the quarter stood at INR 2,276 crore, up 5.7 per cent year-on-year and 2.4 per cent quarter-on-quarter, while full-year NII rose 10.5 per cent to INR 8,944 crore.

Prashant Kumar, managing director & CEO, YES BANK said, "The Q4FY25 marked yet another important quarter for YES BANK as it continued to make steady improvements across several key metrics and progressed well on the strategic objective of improving its profitability.

YES BANK's core franchise has gained significant momentum and is quite well placed to continue to thrive. The Bank remains disciplined and focused on its execution with its strategy and actions remain fully anchored around further improving its positioning and profitability. By going live with a seamless collection facility for GST, the Bank added another important solution for its existing as well as prospective customers and augmented its digital and tech capabilities."

In contrast, IDFC First Bank faced challenges, reporting a sharp decline in profitability. Its net profit for Q4FY25 fell to INR 304 crore from INR 724 crore in Q4FY24. The bank's full-year net profit dropped 48.4 per cent year-on-year to INR 1,525 crore, a decline it attributed to stress in the microfinance sector. Still, the bank reported a 9.8 per cent year-on-year growth in NII for Q4FY25, reaching INR 4,907 crore, and a 17.3 per cent rise in NII for the full year.

V Vaidyanathan, managing director and CEO, IDFC FIRST Bank , said, "Our customer deposits grew well at 25 per cent YoY and the CASA ratio continues to remain strong at 46.9 per cent, reflecting the strength of our deposit franchise.

Our funded asset book grew by 20.4 per cent. Importantly, the Bank's asset quality remains resilient, with GNPA and NNPA at 1.87 per cent and 0.53 per cent respectively. We continue to be committed to grow responsibly, serve high-quality products and services, lead with innovation and build customer centric propositions."