Throughout the quarter, profitability stayed high. In comparison to the quarter that ended on December 31, 2024, profit before tax (PBT) was recorded at Rs 24,260 crore and profit after tax (PAT) at Rs 18,650 crore, indicating a robust year-on-year improvement of 11.5%. Consistent net interest income, robust fee income, and strict cost and credit control all contributed to the improvement in profitability.
Net interest income (NII), which represents interest earned minus interest expended, grew by 6.4% to Rs 32,620 crore for the quarter, up from Rs 30,650 crore in the same period last year.
Despite market challenges, the bank’s core net interest margin was steady at 3.35% on total assets and 3.51% on interest-earning assets, demonstrating consistent balance sheet efficiency.
Compared to Rs 42,110 crore in the same quarter last year, the bank’s net revenue rose by 8.9% YoY to Rs 45,870 crore, indicating strong progress in core banking activities. During the quarter, non-interest revenue, or other income, was Rs 13,250 crore. Fees and commissions of Rs 9,230 crore, as opposed to Rs 8,180 crore during the same time last year, were the main cause of this.
Foreign exchange and derivatives revenue reached Rs 1,430 crore, somewhat more than the Rs 1,400 crore reported in the year-ago quarter.
Operating expenses for the quarter were reported at Rs 18,770 crore. Excluding the estimated impact of Rs 800 crore towards employee benefits under the New Labour Code, operating expenses stood at Rs 17,970 crore, compared with Rs 17,110 crore in the same quarter last year.
HDFC Bank maintained strong cost discipline, with the core cost-to-income ratio at 39.2%, underscoring operational efficiency.
For the quarter that ended on December 31, 2025, the Bank kept a managed risk profile. Provisions and contingencies for the quarter stood at Rs 2,840 crore, after accounting for the release of contingent provisions amounting to Rs 1,040 crore, primarily related to a large borrower group meeting specific conditions. With this release excluded, the total credit cost ratio was kept under control at 0.55%, indicating solid asset quality and careful credit underwriting.
In terms of the balance sheet, the bank kept growing. The entire balance sheet size rose to Rs 40,89,000 crore as of December 31, 2025, from Rs 37,59,000 crore as of December 31, 2024, indicating consistent expansion in lending activities and assets. Additionally, deposit growth continued to be strong. The bank’s average deposits for the December 2025 quarter were Rs 27,52,400 crore, a 1.5% sequential rise over Rs 27,10,500 crore in the September 2025 quarter and a 12.2% year-on-year growth from Rs 24,52,800 crore in the December 2024 quarter.
Within deposits, the bank recorded steady traction in low-cost funds. Average CASA deposits rose to Rs 8,98,400 crore during the December 2025 quarter, marking a 9.9% growth year-on-year from Rs 8,17,600 crore, and a 2.4% increase sequentially over Rs 8,77,000 crore in the September 2025 quarter. This improvement in CASA further supports margin stability and funding efficiency.
As of December 31, 2025, the Bank reported significant growth in deposits. In comparison to December 31, 2024, the total end-of-period (EOP) deposits were Rs 28,60,100 crore, representing an 11.6% YoY growth. Healthy accretion in both current and savings accounts contributed to the 10.1% annual growth in CASA deposits. As of December 31, 2025, there were Rs 6,61,700 crore in savings account deposits and Rs 2,99,500 crore in current account deposits.
Time deposits showed consistent term fund mobilization, rising by 12.3% YoY to Rs 18,98,900 crore in Q3FY26. Consequently, CASA deposits made up 33.6% of all deposits, highlighting the Bank’s solid low-cost funding foundation.
In terms of lending, the Bank kept growing its loan portfolio. For the December 2025 quarter, the average advances under management, grossed up for transfers through interbank participation certificates, bills rediscounted, and securitization or assignment, were Rs 28,64,100 crore. This was a 2.5% sequential increase over Rs 27,94,600 crore in the September 2025 quarter and a 9.0% YoY increase from Rs 26,27,600 crore in the December 2024 quarter.
As of December 31, 2025, HDFC Bank’s asset quality remained steady and robust, demonstrating successful credit monitoring and recovery initiatives. The percentage of gross non-performing assets (GNPA) was 1.24% of gross advances, which was much better than the 1.42% reported as of December 31, 2024, but remained unchanged from the level reported as of September 30, 2025.
Excluding the agricultural segment, asset quality showed further strength. Asset quality demonstrated further strength when the agriculture category was excluded. As of December 31, 2025, GNPA excluding agricultural NPAs was 0.97% compared to 0.99% at the end of September 2025 and 1.19% in the same quarter the year before.
The bank continued to report favorable stress levels overall. As of December 31, 2025, net non-performing assets (NNPA) were controlled at 0.42% of net advances, highlighting careful bank sheet management and robust provisioning coverage. Overall, the bank’s ongoing emphasis on maintaining asset quality in the face of changing macroeconomic conditions is shown in the consistent GNPA ratio and low NNPA.
The distribution network of HDFC Bank has 9,616 branches and 21,176 ATMs spread across 4,170 cities and towns as of December 31, 2025, compared to 9,143 branches and 21,049 ATMs spread across 4,101 cities and towns as of December 31, 2024. Rural and semiurban regions account for half of the branches. Additionally, the bank employs 15,216 business correspondents, most of whom work in Common Service Centers (CSC). As of December 31, 2025, there were 2,15,739 employees, compared to 2,10,219 on December 31, 2024.