Compared to ₹30,650 crore during the same time previous year, HDFC Bank’s net interest income for the quarter increased 6.4% YoY to ₹32,620 crore. Core assets had a net interest margin of 3.35%, while interest-earning assets had a net interest margin of 3.51%.
HDFC Bank Q3FY26 Financial Performance Overview
Compared to ₹18,650 crore, the profit after tax increased 11.5% year over year to ₹18,650 crore. For the December 2025 quarter, HDFC Bank’s average deposits were ₹27.5 lakh crore, up around 12.2% from ₹24.5 lakh crore for the third quarter of FY25.
Deposit Growth Trends
For the December 2025 quarter, the Bank’s average CASA deposits were ₹8.9 lakh crore, up almost 9.9% from ₹8.1 lakh crore for the same period the year before. For the December 2025 quarter, the Bank’s average time deposits were ₹18.5 lakh crore, up around 13.4% from ₹16.3 lakh crore during the same period the previous year.
CASA and Time Deposit Performance
As of December 31, 2025, the Bank’s period-end deposits were around ₹28.5 lakh crore, up 11.5% from ₹25.6 lakh crore in Q3FY25. As of December 31, 2025, the Bank’s period-end CASA deposits were around ₹9.6 lakh crore, up 10.1% from ₹8.7 lakh crore as of Q3FY25.
📊 HDFC Bank Q3FY26 Key Financial Highlights
- Net Profit: ₹18,650 crore (up 11.5% YoY)
- Net Interest Income: ₹32,620 crore (up 6.4% YoY)
- Net Interest Margin: 3.35% (core assets)
- Average Deposits: ₹27.5 lakh crore
- CASA Deposits: ₹8.9 lakh crore
- Asset Quality: GNPA stable at 1.24%
Loan Growth and Asset Quality
The bank’s gross advances increased 11.9% year over year to ₹28.4 lakh crore, with retail loans leading the way at 9.6%, MSME at 17.2%, and corporate or wholesale loans at 10.3%. Regarding asset quality, the bank’s GNPA for the quarter was 1.24% sequentially, almost constant.
📉 Market Performance & Investor Perspective
- 2025 Returns: HDFC Bank gained ~14%
- NIFTY Bank Index: Up ~18%
- Performance Gap: Underperformed benchmark
- Investor Focus: Margin recovery & deposit traction
- Strength: Stable fundamentals and credit metrics
Stock Performance Compared to Peers
With gains of just 14% in 2025 compared to the index’s 18%, HDFC Bank has significantly underperformed its benchmark NIFTY Bank index.
About HDFC Bank
One of the top banks in India, HDFC Bank offers a variety of financial services and products via a number of distribution channels, such as a nationwide network of branches, ATMs, phone banking, online banking, and mobile banking.
Frequently asked questions
1. In Q3FY26, what was the net profit of HDFC Bank?
In Q3FY26, HDFC Bank recorded a net profit of ₹18,650 crore, an increase of 11.5% over the previous year.
2. What was the Net Interest Income (NII) performance of HDFC Bank?
With stable margins and consistent loan growth, the bank’s net interest income increased 6.4% YoY to ₹32,620 crore.
3. In Q3FY26, what was the asset quality of HDFC Bank?
Gross NPA was constant at 1.24% QoQ, showing managed credit risk, while asset quality stayed steady.
4. How did deposits increase throughout the course of the quarter?
While period-end deposits expanded 11.5% YoY to ₹28.5 lakh crore, average deposits jumped 12.2% YoY to ₹27.5 lakh crore.
5. In 2025, how did HDFC Bank do in comparison to NIFTY Bank?
In 2025, HDFC Bank did worse than the NIFTY Bank index, with returns of around 14% as opposed to the index’s 18%.
Conclusion
With double-digit profit growth, steady asset quality, and a robust increase in loans and deposits, HDFC Bank had a strong Q3FY26 performance.
The bank’s solid fundamentals, varied loan growth, and steady credit metrics continue to support its standing as one of India’s most reliable and robust private sector banks, even while margins continued to be under pressure and stock returns behind the NIFTY Bank index.
Market participants will closely track HDFC Bank’s margin recovery and deposit traction in the coming quarters.
Disclaimer:
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Readers are advised to consult a qualified professional before making any investment decisions.
