Winning Bizness Desk
Mumbai.India’s largest private sector lender HDFC Bank on Saturday, January 17, announced its financial results for the third quarter of FY26, reporting a steady improvement across key performance indicators. The bank’s standalone net profit for the December quarter rose 11.5 percent year-on-year to ₹18,654 crore, compared to ₹16,735 crore in the same period last year. The earnings surpassed market expectations, as analysts had pencilled in a net profit of around ₹18,473 crore, reflecting stronger-than-anticipated operational performance.
Executive director to retire in april 2026
Along with the quarterly results, HDFC Bank informed investors that executive director Bhavesh Zaveri will retire from his position on April 18, 2026. Zaveri has been associated with the bank for several years and played a key role in shaping its business strategy and operational framework. The board acknowledged his contribution, stating that his leadership had supported the bank through a phase of transition and consolidation following the merger.
Asset quality shows visible improvement this quarter
The bank reported a sequential improvement in asset quality during the December quarter, offering relief on the stressed asset front. Gross non-performing assets declined compared to the September quarter, indicating better loan performance. The health of the loan book remained stable, which also helped keep provisioning under control. The bank highlighted sustained credit demand from rural and semi-urban markets as a positive driver.
Key asset quality highlights include:
- Reduction in gross NPA levels quarter-on-quarter
- Stable provisioning for stressed loans
- Continued strength in retail and rural lending
- Improved overall loan book quality
Advances and deposits grow in double digits
HDFC Bank recorded healthy growth in both advances and deposits during the quarter. As of December-end, gross advances rose 11.9 percent year-on-year to ₹28.4 lakh crore. Total deposits increased 11.5 percent to ₹28.5 lakh crore, while CASA deposits stood at ₹9.6 lakh crore, reflecting steady traction in low-cost funds.
Interest income and margins remain stable
The bank’s net interest income, which represents the difference between interest earned and interest paid, is estimated to have grown in the range of 4 to 8 percent. Net interest margins remained largely stable. Analysts believe the bank is now managing its balance sheet more efficiently post-merger, with a sharper focus on deposit mobilisation and margin stability.
Digital push and stock outlook ahead
HDFC Bank said it will continue strengthening its digital banking platforms, with a renewed focus on retail loans and the MSME segment. The bank aims to lower its cost-to-income ratio to sustain profitability growth. Market experts noted that the stock is currently in a consolidation phase.
Key points at a glance:
- Focus on digital banking and retail loans
- Expansion plans in MSME lending
- Stock under consolidation despite improved earnings
- Over 9,092 branches and 20,993 ATMs nationwide
Founded in 1994 by Hasmukhbhai Parekh, HDFC Bank is headquartered in Mumbai and led by managing director and CEO Sashidhar Jagdishan.
