India’s largest bank by market capitalization, HDFC Bank, announced a 12.17% year-on-year growth in net profit for the December quarter of the current financial year (Q3 FY26). The bank’s consolidated net profit surged to Rs 19,806.63 crore in Q3, up from Rs 17,656.61 crore in the same quarter last financial year (Q3 FY25).
During the quarter, HDFC Bank’s core income exhibited consistent growth, with net interest income climbing 6.4% year-on-year to Rs 32,615 crore from Rs 30,653 crore in the previous year. The bank also disclosed that its core net interest margin was at 3.35% on total assets and 3.51% based on interest-earning assets.
Operating profit before provisions and contingencies for HDFC Bank increased by 8.4% to Rs 27,097.80 crore from Rs 25,000.40 crore in the corresponding period of the previous year. Moreover, provisions for the quarter decreased by 10% to Rs 2,837.9 crore compared to Rs 3,153.85 crore in the same quarter last financial year.
On the asset quality front, HDFC Bank observed mixed trends. While gross non-performing assets reduced by 2.3% year-on-year to Rs 35,178.98 crore from Rs 36,018.58 crore, net NPAs saw a slight increase of 3.4% to Rs 11,981.75 crore from Rs 11,587.54 crore a year ago. The bank’s ratio of gross NPAs to gross advances improved to 1.24% from 1.42%, and net NPAs as a percentage of net advances stood at 0.42% compared to 0.46% in the previous year.
As per the bank’s exchange filing, HDFC Bank’s total balance sheet size reached Rs 40,890 billion as of December 31, 2025, up from Rs 37,590 billion a year earlier. Average deposits grew by 12.2% year-on-year to Rs 27,524 billion, with CASA deposits rising by 9.9% to Rs 8,984 billion. Additionally, the bank’s lending book expanded steadily, with gross advances increasing by 11.9% year-on-year to Rs 28,446 billion as of December 31, 2025.
