HDFC Bank Q3 FY26 Results

HDFC Bank Q3 FY26 Results: Strong Growth, Stable Asset Quality and Consistent Profitability

HDFC Bank delivered a steady and resilient performance in the third quarter of FY26, reflecting balanced growth across deposits, advances, and income streams, while maintaining strong asset quality and capital adequacy. The results highlight the bank’s ability to navigate a challenging macroeconomic environment with disciplined execution and robust risk management.

Strong Deposit and Advance Growth

During Q3 FY26, HDFC Bank reported average deposits of ₹27.5 trillion, registering a 12.2% year-on-year (YoY) growth and a 1.5% quarter-on-quarter (QoQ) increase. End-of-period deposits stood at ₹28.6 trillion, up 11.6% YoY, supported by healthy growth in both CASA and time deposits

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Advances under management reached ₹28.6 trillion on average, growing 9.0% YoY and 2.5% QoQ. Gross advances increased to ₹28.4 trillion, reflecting an 11.9% YoY rise. Growth was well-distributed across retail, small and mid-market enterprises, and corporate segments, indicating a diversified loan book

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Healthy Income and Profitability

Net Interest Income (NII) for the quarter stood at ₹326.2 billion, marking a 6.4% YoY growth. The Net Interest Margin (NIM) remained stable at 3.35%, demonstrating effective balance sheet management despite changing interest rate conditions

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Profit after tax (PAT) came in at ₹187 billion, growing 11.5% YoY, while earnings per share (EPS) for the quarter was ₹12.1. The bank reported a Return on Assets (RoA) of 1.9% and a Return on Equity (RoE) of 13.9%, underlining consistent profitability

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Stable Asset Quality and Controlled Credit Costs

HDFC Bank’s asset quality remained resilient during the quarter. The Gross NPA ratio stood at 1.24%, while GNPA excluding agriculture loans was lower at 0.97%. Net NPA levels also stayed contained, reflecting prudent underwriting standards and effective recovery mechanisms

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Credit costs remained under control, supported by a strong provision coverage ratio and stable slippages across segments. The bank continues to maintain adequate buffers to manage potential stress in the loan portfolio.

Strong Capital and Liquidity Position

As of December 2025, the bank’s capital adequacy ratio was 19.9%, with CET1 capital at 17.4%, well above regulatory requirements. The Liquidity Coverage Ratio (LCR) remained healthy at around 120%, ensuring sufficient liquidity to meet short-term obligations

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Subsidiaries Add to Overall Strength

HDFC Bank’s key subsidiaries delivered encouraging performances during Q3 FY26.

• HDB Financial Services reported a net profit of ₹6.4 billion with stable asset quality.

• HDFC Life Insurance saw strong premium growth and improved embedded value.

• HDFC AMC posted a 20% YoY increase in profit, supported by higher AUM.

• HDFC ERGO and HDFC Securities also contributed positively to group earnings

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Conclusion

HDFC Bank’s Q3 FY26 results reflect a strong and balanced financial performance, driven by steady growth in deposits and advances, stable margins, disciplined cost management, and resilient asset quality. With a solid capital base and diversified business model, the bank remains well-positioned to sustain long-term growth while managing risks effectively.