HDFC Bank
NII growth eases as NIM declines yoy: Interest income declined 1% to Rs 76610.02 crore, while interest expenses fell 4% to Rs 43528.45 crore in Q4FY2026. NII rose at slower pace of 3% to Rs 33081.57 crore in Q4FY2026.
Margins improve qoq, eases yoy: The bank has shown 108 bps YoY decline in cost of deposits to 5.61%, while yield on advances declined 137 bps YoY to 10.35% in Q4FY2026. Thus, the NIM has eased 16 bps YoY to 3.38%, while rose 3 bps qoq to 3.38% in Q4FY2026.
Healthy growth in the core fee income: The non-interest income of the bank increased 10% to Rs 13198.88 crore in Q4FY2026. Bank has posted strong 8% growth in core fee income to Rs 9220 crore, while the treasury income improved 110% to Rs 820 crore and forex income moved up 3% to Rs 1490 crore. However, the recoveries and other income was flat yoy at Rs 1670 crore.
Expense ratio steady: The operating expenses of the bank increased 5% to Rs 18477.53 crore, as other expenses moved up 7% to Rs 12249.81 crore, while employee expenses rose 2% to Rs 6227.72 crore in Q4FY2026. Cost to income ratio was steady at 39.9% in Q4FY2026 compared with 39.8% in Q4FY2025.
Operating Profit moved up 5% to Rs 27802.92 crore.
Provisions and contingencies dips: The bank has shown 18% decline in provisions to Rs 2610 crore.
PBT increased 8% to Rs 25193.35 crore in Q4FY2026. Effective tax rate declined to 23.7% in Q4FY2026 from 24.5% in Q4FY2025. Net Profit increased 9% YoY to Rs 19221.05 crore in Q4FY2026.
Asset quality improves: The bank has improved asset quality in Q4FY2026.
The fresh slippages of loans stood at Rs 6200 crore in Q4FY2026 compared with Rs 8600 crore in previous quarter and Rs 7500 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 4600 crore, while the write-off of loans was at Rs 2700 crore in Q4FY2026. Provision coverage ratio was steady at 67.00% at end March 2026 compared to 66.00% a quarter ago and 68.00% a year ago. The capital adequacy ratio of the bank stood at 19.7% with Tier I ratio at 17.7% at end March 2026. The risk weighted assets of the bank has increased 12% YoY to Rs 2974100 crore end March 2026. ?| Asset Quality Indicators: HDFC Bank | |||||||
| ? | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 34061.19 | 35178.98 | 34289.48 | 37040.80 | 35222.64 | -3 | -3 |
| Net NPA (Rs Crore) | 11169.54 | 11981.75 | 11447.29 | 12275.99 | 11320.43 | -7 | -1 |
| % Gross NPA | 1.15 | 1.24 | 1.24 | 1.40 | 1.33 | -9 | -18 |
| % Net NPA | 0.38 | 0.42 | 0.42 | 0.47 | 0.43 | -4 | -5 |
| % PCR | 67.00 | 66.00 | 67.00 | 67.00 | 68.00 | 100 | -100 |
| % CRAR - Basel III | 19.71 | 19.87 | 19.96 | 19.88 | 19.55 | -16 | 16 |
| % CRAR - Tier I - Basel III | 17.70 | 17.80 | 17.90 | 17.80 | 17.70 | -10 | 0 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 13% YoY to Rs 6065250 crore end March 2026, as advances growth improved to 12% to Rs 2960000 crore and deposits growth galloped to 14% to Rs 3105250 crore at end March 2026. With the faster growth in deposits, the credit to deposit ratio eased to 95.3% at end March 2026 from 97.4% at end March 2025.
CASA deposits ratio improves: The CASA deposits of the bank increased 12% YoY to Rs 1060300 crore at end March 2026. The current account deposits moved up 13% to Rs 299500 crore, while saving account deposits increased 12% to Rs 661700 crore end March 2026. The CASA ratio eased to 34.1% at end March 2026 compared to 34.8% at end March 2025, while increased from 33.6% at end December 2025. The term deposits have increased 16% to Rs 2044950 crore end March 2026.
Strong loan growth: Within the loan book, the retail loans increased 6% YoY to Rs 1484500 crore at end March 2026, while credit to agriculture increased 10% to Rs 130400 crore and MSME credit moved up 17% to Rs 631600 crore. The corporate credit has also increased 13% to Rs 810800 crore end March 2026. The overseas credit has increased 5% to Rs 47360 crore end March 2026. The share of retail, agriculture and MSME (RAM) eased to 75.9% at end March 2026 compared to 77.8% at end March 2025, while that of corporate loans rose to 24.1% at end March 2026 compared to 22.2% at end March 2025.
Investment book of the bank increased 6% YoY to Rs 884201 crore at end March 2026.
Branch expansion: The bank has distribution network of 9,689 branches and 21,172 ATMs across 4,175 cities / towns at end March 2026 as against 9,455 branches and 21,139 ATMs across 4,150 cities / towns at end March 2025. 50% of the branches are in semi-urban and rural areas. In addition, the Bank has 14,400 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,11,178 at end March 2026 as against 2,14,521 at end March 2025.
Book value of the bank stood at Rs 362.7 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 355.4 per share at end March 2026.
Subsidiaries performance
HDB Financial Services (HDBFSL), is a non-deposit taking NBFC in which the Bank holds a 74.1% stake. For the Q4FY2026, HDBFSL?s net revenue was at Rs 3060 crore. Profit after tax for the Q4FY2026 was Rs 750 crore compared to Rs 530 crore for Q4FY2025, a growth of 41.4%. Profit after tax for FY2026 was Rs 2540 crore. The total loan book was Rs 118500 crore as on March 31, 2026. Stage 3 loans were at 2.44% of gross loans. Total CAR was at 21.4% with Tier-I CAR at 17.1%. 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 the Q4FY2026 was Rs 500 crore compared to Rs 480 crore for Q4FY2025. Profit after tax for FY2026 was Rs 1910 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 the Q4FY2026 was Rs 160 crore compared to Rs 70 crore for Q4FY2025. Profit after tax for FY2026 was Rs 810 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 the Q4FY2026, HDFC AMC?s Quarterly Average Assets Under Management were approximately Rs 927500 crore. Profit after tax for the Q4FY2026 was Rs 620 crore compared to Rs 640 crore for Q4FY2025. Profit after tax for FY2026 was Rs 2860 crore. HDFC Securities (HSL), in which the Bank holds a 94.0% stake, is amongst the leading broking firms. For the Q4FY2026, HSL?s total revenue was Rs 850 crore. Profit after tax for the Q4FY2026 was Rs 270 crore, as against Rs 250 crore for Q4FY2025. Profit after tax for FY2026 was Rs 930 crore.Consolidated Financial Results
The Bank?s consolidated net revenue for FY2026 was Rs 309970 crore. The consolidated profit after tax for FY2026 was Rs 76030 crore.Financial Performance FY2026:
Bank has posted 11% increase in net profit to Rs 74671.29 crore in the year ended March 2026 (FY2026). The net interest income increased 5% to Rs 128686.04 crore, while non-interest income moved up 37% to Rs 62532.57 crore, leading net total income to increase 14% to Rs 191218.61 crore in FY2026. The operating expenses increased 7% to Rs 72660.33 crore, while provision and contingencies jumped 101% to Rs 23389.59 crore. PBT increased 8% to Rs 95168.69 crore in FY2026. The cost-to-income ratio improved to 38.0% in FY2026 compared to 40.5% in FY2025. An effective tax rate eased to 21.5% in FY2026 compared to 23.9% in FY2025. The net profit has increased 11% to Rs 74671.29 crore in FY2026.?
| HDFC Bank: Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 76610.02 | 77460.11 | -1 | 307522.09 | 300517.03 | 2 |
| Interest Expended | 43528.45 | 45394.31 | -4 | 178836.05 | 177846.95 | 1 |
| Net Interest Income | 33081.57 | 32065.80 | 3 | 128686.04 | 122670.08 | 5 |
| Other Income | 13198.88 | 12027.88 | 10 | 62532.57 | 45632.28 | 37 |
| Net Total Income | 46280.45 | 44093.68 | 5 | 191218.61 | 168302.36 | 14 |
| Operating Expenses | 18477.53 | 17556.98 | 5 | 72660.33 | 68174.89 | 7 |
| Operating Profits | 27802.92 | 26536.70 | 5 | 118558.28 | 100127.47 | 18 |
| Provisions & Contingencies | 2609.57 | 3193.05 | -18 | 23389.59 | 11649.42 | 101 |
| Profit Before Tax | 25193.35 | 23343.65 | 8 | 95168.69 | 88478.05 | 8 |
| Provision for tax | 5972.30 | 5727.51 | 4 | 20497.40 | 21130.70 | -3 |
| PAT | 19221.05 | 17616.14 | 9 | 74671.29 | 67347.35 | 11 |
| EPS*(Rs) | 49.9 | 92.1 | ? | 48.5 | 88.0 | ? |
| Equity | 1539.3 | 765.2 | ? | 1539.3 | 765.2 | ? |
| Adj BV (Rs) | 355.4 | 635.2 | ? | 355.4 | 635.2 | ? |
| * 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 | ||||||
