HDFC Bank Q3 Results 2026: Profit Jumps to ₹18,654 Crore, Asset Quality Improves
India’s largest private bank reported strong profit growth and stable asset quality as retail and wholesale banking segments drove earnings expansion in the December quarter.
HDFC Bank Q3 results for the quarter ended December 31, 2025, showed steady earnings growth, strong operating profit, and improving asset quality metrics. The bank reported a net profit of ₹18,654 crore for the quarter, supported by stable interest income, improved treasury performance, and resilient retail and wholesale banking operations.
HDFC Bank Q3 FY26 — Key Live Data
| Metric | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Net Profit | ₹18,654 crore | ₹16,736 crore | +11.5% |
| Total Income | ₹90,005 crore | ₹87,460 crore | +2.9% |
| Operating Profit | ₹27,098 crore | ₹25,000 crore | +8.4% |
| Gross NPA Ratio | 1.24% | 1.42% | Improved |
| Net NPA Ratio | 0.42% | 0.46% | Improved |
| Capital Adequacy | 19.87% | 19.97% | Stable |
Source: HDFC Bank quarterly results filing.
Table of Contents
- Key Highlights
- Financial Performance
- Operational Drivers
- Segment Trends
- Asset Quality and Balance Sheet
- Capital-Flow Impact
- Valuation Context
- Key Risks
- Outlook
Key Highlights
- Net profit rose to ₹18,654 crore in Q3 FY26.
- Total income increased to ₹90,005 crore.
- Operating profit grew to ₹27,098 crore.
- Gross NPA ratio improved to 1.24%.
- Capital adequacy remained strong at 19.87%.
- Return on assets stood at 0.48% for the quarter.
HDFC Bank Q3 Results 2026: Financial Performance
HDFC Bank reported total income of ₹90,005 crore in Q3 FY26, compared with ₹87,460 crore in the same quarter last year, reflecting moderate balance-sheet expansion and stable yield environment.
Interest earned stood at ₹76,751 crore, while other income contributed ₹13,254 crore, indicating steady fee and treasury contributions during the quarter.
Operating profit rose to ₹27,098 crore, supported by controlled operating expenses and stable interest spreads.
Net profit for the quarter increased to ₹18,654 crore, compared with ₹16,736 crore in the same quarter last year.
HDFC Bank Q3 Results 2026: Quarterly Performance Snapshot
| Metric | Q3 FY26 | Q3 FY25 |
|---|---|---|
| Total Income | ₹90,005 crore | ₹87,460 crore |
| Operating Profit | ₹27,098 crore | ₹25,000 crore |
| Net Profit | ₹18,654 crore | ₹16,736 crore |
HDFC Bank Q3 Results 2026: Operational Drivers
The quarter’s earnings were driven by steady interest income, improving operating efficiency, and stable credit costs. Interest earned on advances remained the largest contributor, accounting for over ₹59,953 crore during the quarter.
Operating expenses rose moderately to ₹18,771 crore, reflecting employee costs and other operating expenses as the bank continued to invest in branch expansion and digital capabilities.
Provisions for the quarter stood at ₹2,838 crore, lower than the prior year, supporting net profit growth.
Segment Trends
Retail banking remained the largest revenue contributor, generating over ₹76,320 crore in segment revenue during the quarter. Wholesale banking contributed ₹42,764 crore, reflecting continued strength in corporate lending and trade finance.
Treasury operations also contributed ₹18,149 crore in revenue, supported by stable bond markets and investment income.
| Segment | Revenue (Q3 FY26) |
|---|---|
| Retail Banking | ₹76,320 crore |
| Wholesale Banking | ₹42,764 crore |
| Treasury | ₹18,149 crore |
Asset Quality and Balance Sheet
Asset quality metrics improved during the quarter, with the gross NPA ratio declining to 1.24% from 1.42% a year earlier. Net NPA ratio improved to 0.42% from 0.46%.
Total advances stood at ₹28.21 lakh crore, while deposits rose to ₹28.60 lakh crore, indicating continued balance-sheet growth.
Capital adequacy remained strong at 19.87%, providing sufficient buffer for future loan growth and regulatory requirements.
Capital-Flow Impact
As India’s largest private bank by market capitalisation, HDFC Bank remains a core holding for domestic mutual funds, insurance companies, and foreign institutional investors.
Stable asset quality, strong capital buffers, and consistent earnings growth reinforce its position as a key allocation within financial sector portfolios. The bank’s performance often influences capital flows across the broader private banking segment.
Valuation Context
Private sector banks typically trade based on price-to-book multiples, return on equity, and asset-quality trends. HDFC Bank’s improving NPAs and strong capital ratios support its premium valuation relative to peers.
The bank’s consistent profitability and scale advantages continue to position it as a benchmark stock for institutional investors tracking India’s financial sector.
Key Risks
- Rising funding costs if interest rates remain elevated.
- Slower credit growth in a tightening liquidity environment.
- Pressure on margins from intense competition in retail lending.
- Regulatory changes affecting capital or provisioning norms.
Outlook
HDFC Bank’s outlook remains supported by stable asset quality, strong capital buffers, and diversified revenue streams across retail, wholesale, and treasury segments.
Future earnings growth will depend on credit demand trends, funding costs, and margin dynamics as the interest-rate cycle evolves.
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