Daijiworld Media Network - Mumbai

Mumbai, Jan 17: HDFC Bank, India’s most valuable lender by market capitalisation, reported a solid financial performance for the December quarter of FY26, registering a 12.17 per cent year-on-year increase in consolidated net profit.

The bank’s net profit for the third quarter rose to Rs 19,806.63 crore, compared with Rs 17,656.61 crore in the corresponding period of the previous financial year.

Core earnings remained resilient, with net interest income (NII) climbing 6.4 per cent year-on-year to Rs 32,615 crore, up from Rs 30,653 crore in Q3 FY25. During the quarter, HDFC Bank reported a net interest margin of 3.35 per cent on total assets and 3.51 per cent on interest-earning assets.

Operating profit before provisions and contingencies increased 8.4 per cent to Rs 27,097.80 crore, from Rs 25,000.40 crore a year earlier. At the same time, provisioning requirements eased, with provisions declining 10 per cent year-on-year to Rs 2,837.9 crore.

Asset quality indicators showed a mixed picture. Gross non-performing assets (NPAs) declined 2.3 per cent to Rs 35,178.98 crore, while net NPAs edged up marginally by 3.4 per cent to Rs 11,981.75 crore. The gross NPA ratio improved to 1.24 per cent from 1.42 per cent a year ago, and net NPAs stood at 0.42 per cent of net advances, compared with 0.46 per cent in the previous year.

According to the bank’s regulatory filing, HDFC Bank’s balance sheet expanded to Rs 40,890 billion as of December 31, 2025, from Rs 37,590 billion a year earlier. Average deposits grew 12.2 per cent year-on-year to Rs 27,524 billion, while low-cost CASA deposits increased 9.9 per cent to Rs 8,984 billion.

The lender’s credit portfolio also continued to grow steadily, with gross advances rising 11.9 per cent year-on-year to Rs 28,446 billion at the end of December 2025.