HDFC Bank Q3FY26 net profit jumps 11.5% to ₹18,650 crore; asset quality unchanged QoQ

Sat Jan 17 12:40:00 UTC 2026: ### HDFC Bank Reports Strong Q3 Performance, Driven by Interest Income

The Story:
HDFC Bank announced robust financial results for the quarter ending December 31, 2025, with a significant increase in net profit and asset management. The bank’s net profit jumped by 11.6% year-over-year (YoY) to ₹18,650 crore, fueled by strong interest income. Average assets under management also saw a substantial rise, increasing by 9% YoY to ₹28.6 lakh crore. The bank has however underperformed the NIFTY Bank index, delivering 14% returns in 2025 as against the index’s 18%.

Key Points:

• Net profit increased by 11.6% YoY to ₹18,650 crore.
• Average assets under management rose 9% YoY to ₹28.6 lakh crore.
• Net interest income increased by 6.4% YoY to ₹32,620 crore.
• Average deposits grew by 12.2% to ₹27.5 lakh crore.
• Gross advances increased by 11.9% YoY to ₹28.4 lakh crore, led by retail, MSME, and corporate loans.
• GNPA (Gross Non-Performing Assets) remained largely unchanged at 1.24%.

Key Takeaways:

• HDFC Bank demonstrates strong growth in key financial metrics, including profit, assets, and deposits.
• The bank’s performance is primarily driven by strong interest income and growth in lending across retail, MSME, and corporate sectors.
• Despite strong overall performance, HDFC Bank has underperformed the NIFTY Bank index in 2025, signaling potential areas for improvement in shareholder returns.
• Asset quality remains stable, with GNPA largely unchanged, indicating effective risk management.

Impact Analysis:

The positive Q3 results are likely to reinforce investor confidence in HDFC Bank, though the underperformance against the NIFTY Bank index may prompt some scrutiny. The bank’s continued growth in lending across various sectors signals its strategic focus on expanding its market reach and diversifying its revenue streams. The stable asset quality suggests that HDFC Bank is managing its credit risks effectively. Moving forward, the bank’s ability to sustain this growth trajectory and improve shareholder returns will be crucial for maintaining its position as a premier financial institution in India.

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