HDFC Bank Q3 FY26 Net Profit Rises 11.5% to ₹18,654 Crore

Udaipur : HDFC Bank Ltd., India's largest private sector lender, reported a steady performance for the quarter ended December 31, 2025, with net profit growing 11.5% year-on-year (YoY) to ₹18,653.75 crore. The Board of Directors approved the results in a meeting held today. Financial Performance: Stability Amidst Provisioning The bank's Net Interest Income (NII), the core measure of lending profitability, grew by 6.4% to ₹32,615 crore. The core Net Interest Margin (NIM) stood at 3.35%. Total net revenue (NII plus other income) increased by 8.9% to ₹45,870 crore. Other income remained robust at ₹13,253.84 crore, driven by fees and commissions. Operating expenses for the quarter were ₹18,771 crore. This included an estimated ₹800 crore impact from the implementation of the newly notified Labour Codes. Excluding this, the core cost-to-income ratio was 39.2%. A notable feature of the quarter was a release of ₹1,040 crore from contingent provisions, primarily related to a large borrower group fulfilling certain conditions. Consequently, total provisions (other than tax) for the quarter stood at ₹2,837.86 crore. Excluding this release, the underlying credit cost ratio was 0.55%. Asset Quality Shows Improvement The bank's asset quality improved sequentially and on a yearly basis. · Gross Non-Performing Assets (GNPA) ratio: Improved to 1.24% as of Dec 31, 2025, from 1.42% a year ago and stable from 1.24% in September 2025. · Net Non-Performing Assets (NNPA) ratio: Stood at a healthy 0.42%. The bank also made a substantial floating provision of ₹9,000 crore during the nine-month period, in line with its Board-approved policy, strengthening its balance sheet resilience. Business Growth: Advances and Deposits Maintain Momentum The bank's deposit franchise remained strong, with total deposits growing 11.6% YoY to ₹28.60 lakh crore. The Current Account Savings Account (CASA) ratio was 33.6%. Gross advances grew by 11.9% YoY to ₹28.45 lakh crore, with a balanced growth across segments: · Retail Loans: +6.9% · Small & Mid-Market Enterprises (SME): +17.2% · Corporate & Wholesale: +10.3% The Capital Adequacy Ratio (CAR) remained robust at 19.87%, significantly above the regulatory requirement.