HDFC Bank Q3 FY26 Net Profit Rises 11.5% to ₹18,654 Crore; Announces Senior Management Change

Mumbai, January 17, 2026: HDFC Bank Ltd., India's largest private sector lender, reported a steady performance for the quarter ended December 31, 2025, with net profit growing 11.5% year-on-year (YoY) to ₹18,653.75 crore. The Board of Directors approved the results in a meeting held today.

In a significant corporate development, the bank announced that Mr. Bhavesh Zaveri, Executive Director, will retire on April 18, 2026. Mr. Zaveri, who was appointed for a three-year term in April 2023, has decided not to seek re-appointment as he plans to explore opportunities outside the banking sector, including within group companies. The Board placed on record its appreciation for his long and devoted service.

Financial Performance: Stability Amidst Provisioning

The bank's Net Interest Income (NII), the core measure of lending profitability, grew by 6.4% to ₹32,615 crore. The core Net Interest Margin (NIM) stood at 3.35%. Total net revenue (NII plus other income) increased by 8.9% to ₹45,870 crore.

Other income remained robust at ₹13,253.84 crore, driven by fees and commissions. Operating expenses for the quarter were ₹18,771 crore. This included an estimated ₹800 crore impact from the implementation of the newly notified Labour Codes. Excluding this, the core cost-to-income ratio was 39.2%.

A notable feature of the quarter was a release of ₹1,040 crore from contingent provisions, primarily related to a large borrower group fulfilling certain conditions. Consequently, total provisions (other than tax) for the quarter stood at ₹2,837.86 crore. Excluding this release, the underlying credit cost ratio was 0.55%.

Asset Quality Shows Improvement

The bank's asset quality improved sequentially and on a yearly basis.

• Gross Non-Performing Assets (GNPA) ratio: Improved to 1.24% as of Dec 31, 2025, from 1.42% a year ago and stable from 1.24% in September 2025.

• Net Non-Performing Assets (NNPA) ratio: Stood at a healthy 0.42%.

The bank also made a substantial floating provision of ₹9,000 crore during the nine-month period, in line with its Board-approved policy, strengthening its balance sheet resilience.

Business Growth: Advances and Deposits Maintain Momentum

The bank's deposit franchise remained strong, with total deposits growing 11.6% YoY to ₹28.60 lakh crore. The Current Account Savings Account (CASA) ratio was 33.6%.

Gross advances grew by 11.9% YoY to ₹28.45 lakh crore, with a balanced growth across segments:

• Retail Loans: +6.9%

• Small & Mid-Market Enterprises (SME): +17.2%

• Corporate & Wholesale: +10.3%

The Capital Adequacy Ratio (CAR) remained robust at 19.87%, significantly above the regulatory requirement.

Consolidated Performance & Subsidiaries

On a consolidated basis, which includes insurance and asset management subsidiaries, net profit for Q3 FY26 was ₹19,806.63 crore, a growth of 12.2% YoY.

Key subsidiaries performed well:

• HDB Financial Services (HDBFS): PAT grew 36.3% YoY to ₹640 crore. The Bank monetized part of its stake via an IPO in June 2025, booking a net gain of ₹9,179 crore (standalone).

• HDFC Life Insurance: PAT at ₹420 crore.

• HDFC AMC: PAT grew 20.1% YoY to ₹770 crore, with Average Assets Under Management at approx. ₹9.25 lakh crore.

Market Reaction and Outlook

The results demonstrate HDFC Bank's consistent execution and strong liability franchise. The improvement in asset quality and comfortable capital position provide a stable platform for future growth. The market will closely watch the succession plan for the role being vacated by Mr. Zaveri.

The insider trading window for the bank's designated persons will reopen on Tuesday, January 20, 2026.

About HDFC Bank: HDFC Bank is a leading private sector bank in India, with a widespread network of over 9,600 branches and 21,000 ATMs across 4,170 cities/towns.