HDFC Bank Q3 earnings preview by Citi Research

HDFC Bank Results 2025: After securing over ₹1 trillion in deposits in Q2, we anticipate a slowdown in momentum during the seasonally weaker Q3, projecting a deposit accretion of around ₹550 billion. The bank’s efforts to reduce the loan-to-deposit ratio (LDR), sell assets, and repay HDFC’s borrowings will likely keep sequential loan growth in line with deposit growth, with a potential slowdown of under 5% year-on-year.

The focus will be on incremental spreads, changes in the portfolio mix (shifting towards retail), and refinancing borrowings to gradually improve net interest margins (NIMs). We expect NIMs to remain largely stable quarter-on-quarter, with a slight downward bias. Gross slippages in Q3 could increase due to seasonal stress in the agricultural book.