HDFC Bank delivered a strong performance in Q3 FY26, reporting an impressive 11.5% year-on-year rise in net profit.
Despite margin pressure in the banking sector, the lender showed resilience through steady revenue growth, improving asset quality, and strong deposit mobilisation.
HDFC Bank’s standalone net profit rose to ₹18,654 crore, up from the same quarter last year.
Total revenue increased 8.9% YoY to ₹45,870 crore, supported mainly by core banking operations.
Net Interest Income (NII) grew 6.4% to ₹32,620 crore.
Margins remained stable, with core NII margin at 3.35% on total assets.
Operating expenses stood at ₹18,770 crore, but excluding a one-time labour code adjustment, growth remained controlled.
Balance Sheet Growth
Average deposits rose 12.2% YoY to ₹27.52 lakh crore, while period-end deposits touched ₹28.60 lakh crore.
CASA deposits averaged ₹8.98 lakh crore, contributing 33.6% to total deposits.
Gross advances reached ₹28.45 lakh crore, growing 11.9% year-on-year.
Growth was driven by retail, MSME, and wholesale loans, showing balanced credit expansion.
Asset Quality & Provisions
Asset quality improved notably. Gross NPAs declined to 1.24%, while net NPAs remained low at 0.42%.
Provisions fell over 10% to ₹2,840 crore, supported by a large borrower recovery.
Excluding this, credit cost stayed at a healthy 0.55%.
Capital Strength
HDFC Bank maintained a strong capital position with a Basel III CAR of 19.9%.
Tier-1 capital stood at 17.8%, giving the bank ample room to support future growth.
Network Expansion
The bank continued expanding its footprint.
Total branches increased to 9,616, and ATMs reached 21,176 across 4,170 locations.
Employee strength grew to 215,739, reflecting long-term operational confidence.
Why This Matters
HDFC Bank’s Q3 FY26 results highlight its ability to grow profitably even in a challenging environment.
With improving asset quality, strong deposits, and solid capital buffers, the bank remains well-positioned post-merger and continues to lead India’s banking sector.
Disclaimer: Yeh views market experts ke hain and not of trueincome.
