HDFC Bank
NII growth improves as NIM rises: Interest income increased 1% to Rs 76751.16 crore, while interest expenses fell 3% to Rs 44136.16 crore in Q3FY2026. NII improved 6% to Rs 32615.00 crore in Q3FY2026.
Margins improve on sequential basis: The bank has shown 90 bps YoY decline in cost of deposits to 6.17%, while yield on advances declined 116 bps YoY to 10.79% in Q3FY2026. NIM has eased 8 bps YoY to 3.35%, while rose 8 bps qoq to 3.35% in Q3FY2026.
Healthy growth in the core fee income: The non-interest income of the bank increased 16% to Rs 13253.84 crore in Q3FY2026. Bank has posted strong 13% growth in core fee income to Rs 9230 crore, while the treasury income improved 1229% to Rs 930 crore and forex income moved up 2% to Rs 1430 crore. However, the recoveries income and other income eased 7% to Rs 1660 crore in Q3FY2026.
Expense ratio rises due to one of expenses: The operating expenses of the bank increased 10% to Rs 18771.04 crore, as other expenses moved up 4% to Rs 11567.87 crore, while employee expenses jumped 21% to Rs 7203.17 crore in Q3FY2026. Operating expenses included the estimated impact of Rs 800 crore for employee benefits under the New Labour Code. Cost to income ratio rose to 40.9% in Q3FY2026 compared with 40.6% in Q3FY2025. Operating Profit moved up 8% to Rs 27097.80 crore.
Provisions and contingencies decline: The bank has shown 10% decline in provisions to Rs 2838 crore (after release of contingent provisions of Rs 1040 billion primarily in respect of a large borrower group fulfilling certain conditions). The total credit cost ratio excluding the release of contingent provisions as stated above was at 0.55% for Q3FY2026.
PBT increased 11% to Rs 24259.94 crore in Q3FY2026. Effective tax rate declined to 23.1% in Q3FY2026 from 23.4% in Q3FY2025. Net Profit increased 11% YoY to Rs 18653.75 crore in Q3FY2026.
Asset quality improving: The bank has improved asset quality in Q3FY2026.
The fresh slippages of loans stood at Rs 8600 crore in Q3FY2026 compared with Rs 7400 crore in previous quarter and Rs 8800 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 4500 crore, while the write-off of loans was at Rs 3200 crore in Q3FY2026. Provision coverage ratio eased slightly to 66.00% at end December 2025 compared to 67.00% a quarter ago and 68.00% a year ago. The capital adequacy ratio of the bank stood at 19.9% with Tier I ratio at 17.8% at end December 2025. The risk weighted assets of the bank has increased 14% YoY to Rs 2784100 crore end December 2025,| Asset Quality Indicators: HDFC Bank | |||||||||
| ? | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Variation | ? | ||
| QoQ | YTD | YoY | ? | ||||||
| Gross NPA (Rs Crore) | 35178.98 | 34289.48 | 37040.80 | 35222.64 | 36018.58 | 3 | 0 | -2 | ? |
| Net NPA (Rs Crore) | 11981.75 | 11447.29 | 12275.99 | 11320.43 | 11587.54 | 5 | 6 | 3 | ? |
| % Gross NPA | 1.24 | 1.24 | 1.40 | 1.33 | 1.42 | 0 | -9 | -18 | ? |
| % Net NPA | 0.42 | 0.42 | 0.47 | 0.43 | 0.46 | 0 | -1 | -4 | ? |
| % PCR | 66.00 | 67.00 | 67.00 | 68.00 | 68.00 | -100 | -200 | -200 | ? |
| % CRAR - Basel III | 19.87 | 19.96 | 19.88 | 19.55 | 19.97 | -9 | 32 | -10 | ? |
| % CRAR - Tier I - Basel III | 17.80 | 17.90 | 17.80 | 17.70 | 18.03 | -10 | 10 | -23 | ? |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||||
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Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 12% YoY to Rs 5704655 crore end December 2025, as advances growth improved to 12% to Rs 2844600 crore and deposits growth was steady at 12% to Rs 2860055 crore at end December 2025. With the faster growth in advances, the credit to deposit ratio rose to 99.5% at end December 2025 from 99.2% at end December 2024.
CASA deposits ratio eases: The CASA deposits of the bank increased 10% YoY to Rs 961200 crore at end December 2025. The current account deposits moved up 12% to Rs 296400 crore, while saving account deposits increased 9% to Rs 652700 crore end December 2025. The CASA ratio eased to 33.6% at end December 2025 compared to 34.0% at end December 2024 and 33.9% at end September 2025. The term deposits have increased 12% to Rs 1898855 crore end December 2025.
Healthy loan growth: Within the loan book, the retail loans increased 6% YoY to Rs 1450900 crore at end December 2025, while credit to agriculture increased 15% to Rs 123800 crore and MSME credit galloped 17% to Rs 599600 crore. The corporate credit has increased 10% to Rs 771700 crore end December 2025. The overseas credit has rose 6% to Rs 48358 crore end December 2025. The share of retail, agriculture and MSME (RAM) eased to 76.4% at end December 2025 compared to 78.0% at end December 2024, while that of corporate loans rose to 23.6% at end December 2025 compared to 22.0% at end December 2024.
Investment book of the bank increased 8% YoY to Rs 878257 crore at end December 2025.
Branch expansion: The bank has added 71 branches and reduced 241 ATMs in Q3FY2026. End December 2025, the Bank?s distribution network was at 9,616 branches and 21,176 ATMs across 4,170 cities / towns as against 9,143 branches and 21,049 ATMs across 4,101 cities / towns end December 2024. 50% of the branches are in semi- urban and rural areas. In addition, the Bank has 15,216 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,15,739 end December 2025 (as against 2,10,219 end December 2024).
Book value of the bank stood at Rs 349.8 per share at end December 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 341.9 per share at end December 2025.
Subsidiaries performance
HDB Financial Services (HDBFSL), is a non-deposit taking NBFC in which the Bank holds a 74.1% stake. For Q3FY2026, HDBFSL?s net revenue was at Rs 2970 crore. Profit after tax for Q3FY2026 was Rs 640 crore compared to Rs 470 crore for Q3FY2025, a growth of 36.3%. Profit after tax for 9MFY2026 was Rs 1790 crore. The total loan book was Rs 114600 crore at end December 2025. Stage 3 loans were at 2.81% of gross loans. Total CAR was at 21.8% with Tier-I CAR at 17.3%. HDFC Life Insurance Company (HDFC Life), in which the Bank holds a 50.2% stake, is a leading life insurance solutions provider. Profit after tax for Q3FY2026 was Rs 420 crore compared to Rs 410 crore for Q3FY2025. Profit after tax for 9MFY2026 was Rs 1410 crore. HDFC ERGO General Insurance Company (HDFC ERGO), in which the Bank holds a 50.3% stake, offers a range of general insurance products. Profit after tax for Q3FY2026 was Rs 260 crore compared to Rs 100 crore for Q3FY2025. Profit after tax for 9MFY2026 was Rs 650 crore. HDFC Asset Management Company (HDFC AMC), in which the Bank holds a 52.4% stake, is the Investment Manager to HDFC Mutual Fund, and offers a comprehensive suite of savings and investment products. For Q3FY2026, HDFC AMC?s Quarterly Average Assets Under Management were approximately Rs 924900 crore. Profit after tax for Q3FY2026 was Rs 770 crore compared to Rs 640 crore for Q3FY2025, a growth of 20.1%. Profit after tax for 9MFY2026 was Rs 2240 crore. HDFC Securities (HSL), in which the Bank holds a 94.1% stake, is amongst the leading broking firms. For Q3FY2026, HSL?s total revenue was Rs 830 crore. Profit after tax for Q3FY2026 was Rs 220 crore, as against Rs 270 crore for Q3FY2025. Profit after tax for 9MFY2026 was Rs 660 crore.Consolidated Financial Results:
The Bank?s consolidated net revenue was Rs 81110 crore for Q3FY2026. The consolidated profit after tax for Q3FY2026 was Rs 19810 crore, a growth of 12.2% over Q3FY2025. The consolidated profit after tax for 9MFY2026 was Rs 55680 crore.Financial Performance 9MFY2026:
Bank has posted 11% increase in net profit to Rs 55450.24 crore in the nine months ended December 2025 (9MFY2026). The net interest income increased 6% to Rs 95604.47 crore, while non-interest income moved up 47% to Rs 49333.69 crore, leading net total income to increase 17% to Rs 144938.16 crore in 9MFY2026. The operating expenses increased 7% to Rs 54182.80 crore, while provision and contingencies jumped 146% to Rs 20780.02 crore. PBT increased 7% to Rs 69975.34 crore in 9MFY2026. The cost-to-income ratio improved to 37.4% in 9MFY2026 compared to 40.8% in 9MFY2025. An effective tax rate eased to 20.8% in 9MFY2026 compared to 23.6% in 9MFY2025. The net profit has increased 11% to Rs 55450.24 crore in 9MFY2026.| HDFC Bank: Results | |||||||||
| Particulars | 2512 (3) | 2412 (3) | Var % | 2512 (9) | 2412 (9) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 76751.16 | 76006.88 | 1 | 230912.06 | 223056.94 | 4 | 300517.03 | 258340.56 | 16 |
| Interest Expended | 44136.16 | 45353.63 | -3 | 135307.59 | 132452.64 | 2 | 177846.95 | 149808.09 | 19 |
| Net Interest Income | 32615.00 | 30653.25 | 6 | 95604.47 | 90604.30 | 6 | 122670.08 | 108532.47 | 13 |
| Other Income | 13253.84 | 11453.56 | 16 | 49333.69 | 33604.40 | 47 | 45632.28 | 49240.99 | -7 |
| Net Total Income | 45868.84 | 42106.81 | 9 | 144938.16 | 124208.70 | 17 | 168302.36 | 157773.46 | 7 |
| Operating Expenses | 18771.04 | 17106.41 | 10 | 54182.80 | 50617.91 | 7 | 68174.89 | 63386.01 | 8 |
| Operating Profits | 27097.80 | 25000.40 | 8 | 90755.36 | 73590.79 | 23 | 100127.47 | 94387.45 | 6 |
| Provisions & Contingencies | 2837.86 | 3153.85 | -10 | 20780.02 | 8456.37 | 146 | 11649.42 | 23492.14 | -50 |
| Profit Before Tax | 24259.94 | 21846.55 | 11 | 69975.34 | 65134.42 | 7 | 88478.05 | 70895.31 | 25 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 24259.94 | 21846.55 | 11 | 69975.34 | 65134.42 | 7 | 88478.05 | 70895.31 | 25 |
| Provision for tax | 5606.19 | 5111.05 | 10 | 14525.10 | 15403.19 | -6 | 21130.70 | 10083.03 | 110 |
| PAT | 18653.75 | 16735.50 | 11 | 55450.24 | 49731.23 | 11 | 67347.35 | 60812.28 | 11 |
| EPS*(Rs) | 48.5 | 87.5 | ? | 48.1 | 86.7 | ? | 88.0 | 80.0 | ? |
| Equity | 1538.5 | 764.8 | ? | 1538.5 | 764.8 | ? | 765.2 | 759.7 | ? |
| Adj BV (Rs) | 341.9 | 611.6 | ? | 341.9 | 611.6 | ? | 640.1 | 568.3 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 1, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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