quarter and nine months ended December 31, 2025, delivering consistent growth across revenues, profitability, and balance sheet parameters. The results kept HDFC Bank’s stock in focus as the lender maintained its position as one of India’s most stable performers.
Revenue and Net Interest Income Growth
During the December 2025 quarter, the bank’s net revenues increased 8.9% year-on-year to ₹458.7 billion, compared with ₹421.1 billion in the corresponding period last year. Net interest income rose 6.4% to ₹326.2 billion, supported by healthy loan demand and stable asset yields. Core net interest margin stood at 3.35% on total assets and 3.51% on interest-earning assets, indicating resilience in margins.
Other Income and Operating Efficiency
Non-interest income for the quarter was reported at ₹132.5 billion. Fee and commission income remained the primary contributor at ₹92.3 billion, followed by foreign exchange and derivatives income of ₹14.3 billion. Net trading and mark-to-market gains surged to ₹9.3 billion from ₹0.7 billion a year ago, while other income amounted to ₹16.6 billion.
Operating expenses were ₹187.7 billion for the quarter. Excluding an estimated ₹8.0 billion impact related to the New Labour Code, expenses stood at ₹179.7 billion. The bank maintained strong cost discipline, with the core cost-to-income ratio remaining healthy at 39.2%.
Stable Profitability
Profit before tax for Q3FY26 stood at ₹242.6 billion. Net profit rose 11.5% year-on-year to ₹186.5 billion, reflecting HDFC Bank’s consistent earnings performance despite a challenging operating environment.
Balance Sheet and Deposit Growth
As of December 31, 2025, HDFC Bank’s balance sheet size expanded to ₹40,890 billion from ₹37,590 billion a year earlier. Average deposits for the quarter increased 12.2% year-on-year to ₹27,524 billion. Average CASA deposits grew 9.9% to ₹8,984 billion, supporting a stable and low-cost funding profile. On a sequential basis, CASA balances rose 2.4%, highlighting continued traction in retail deposits.
Nine-Month Financial Performance
For the nine months ended December 31, 2025, total income increased to ₹2,802.5 billion from ₹2,566.6 billion in the previous year. Net revenues for the period rose to ₹1,449.4 billion compared with ₹1,242.1 billion a year ago. Profit after tax for the nine-month period grew 11.5% year-on-year to ₹554.5 billion, driven by steady growth across key business segments.
Consolidated Performance
On a consolidated basis, net revenue for the December 2025 quarter stood at ₹811.1 billion. Consolidated profit after tax increased 12.2% year-on-year to ₹198.1 billion. For the nine-month period, consolidated profit reached ₹556.8 billion, underscoring the group’s robust performance.
Summary:
HDFC Bank delivered a steady Q3FY26 performance with net profit rising 11.5% year-on-year, supported by growth in net revenues, stable margins, disciplined cost management, and healthy deposit expansion. The bank’s consistent standalone and consolidated results reinforce its strong fundamentals and long-term growth outlook.
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