Did HDFC Bank Achieve a 12% Increase in Q3 Net Profit?
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Synopsis
In a significant financial milestone, HDFC Bank has reported a robust 12.17% increase in net profit for Q3 FY26. This surge reflects the bank's strong core income and improved asset quality, showcasing its dominance in the Indian banking sector. Explore the details behind this remarkable performance.
Key Takeaways
- 12.17% increase in net profit year-on-year.
- Net interest income rose by 6.4%.
- Operating profit grew 8.4%.
- Gross NPAs declined by 2.3%.
- Average deposits increased by 12.2%.
Mumbai, Jan 17 (NationPress) – HDFC Bank, recognized as India’s leading financial institution by market capitalization, disclosed a remarkable year-on-year increase of 12.17% in net profit for the December quarter of the ongoing fiscal year (Q3 FY26). The consolidated net profit surged to Rs 19,806.63 crore in Q3, up from Rs 17,656.61 crore during the corresponding quarter of the previous fiscal year (Q3 FY25).
Furthermore, the bank’s core income demonstrated consistent growth during this quarter. The net interest income experienced a 6.4% year-on-year rise, reaching Rs 32,615 crore, compared to Rs 30,653 crore in the same period last year.
HDFC Bank reported its core net interest margin at 3.35% on total assets and 3.51% based on interest-earning assets.
The operating profit before provisions and contingencies increased by 8.4% to Rs 27,097.80 crore, up from Rs 25,000.40 crore in the previous year’s quarter.
Provisions for the quarter saw a decrease of 10%, amounting to Rs 2,837.9 crore, in contrast to Rs 3,153.85 crore in the same quarter last year.
On the asset quality aspect, the bank exhibited mixed trends. The gross non-performing assets decreased by 2.3% year-on-year to Rs 35,178.98 crore, down from Rs 36,018.58 crore.
However, net NPAs increased slightly by 3.4% to Rs 11,981.75 crore, compared to Rs 11,587.54 crore a year prior.
The proportion of gross NPAs to gross advances improved to 1.24% from 1.42%, while net NPAs as a fraction of net advances remained at 0.42%, compared to 0.46% last 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, an increase from Rs 37,590 billion a year earlier.
Average deposits increased by 12.2% year-on-year to Rs 27,524 billion, while CASA deposits grew 9.9% to Rs 8,984 billion.
The lending portfolio also showed steady growth, with gross advances rising 11.9% year-on-year to Rs 28,446 billion as of December 31, 2025.
Point of View
I believe HDFC Bank's latest financial report is a testament to its resilience and strategic management in the banking sector. The bank's ability to increase profitability while maintaining asset quality is commendable, reflecting a positive outlook for the Indian economy.
NationPress
17/01/2026
Frequently Asked Questions
What is HDFC Bank's net profit for Q3 FY26?
HDFC Bank reported a net profit of Rs 19,806.63 crore for Q3 FY26, marking a 12.17% year-on-year increase.
How much did HDFC Bank's net interest income grow?
The net interest income rose by 6.4% year-on-year to reach Rs 32,615 crore.
What are the trends in HDFC Bank's asset quality?
Gross non-performing assets decreased by 2.3%, while net NPAs increased by 3.4% year-on-year.
What is the total balance sheet size of HDFC Bank?
As of December 31, 2025, HDFC Bank's total balance sheet size was Rs 40,890 billion.
How did HDFC Bank's average deposits change?
Average deposits grew by 12.2% year-on-year, reaching Rs 27,524 billion.
