HDFC Bank Q3 Results: Net Profit Soars 11% to Rs 18,654 Crore

HDFC Bank Q3 Results: India’s largest private-sector lender, HDFC Bank, delivered a better-than-expected performance in the December quarter, reporting an 11 per cent year-on-year increase in standalone net profit. The bank posted a profit of Rs 18,654 crore, compared with Rs 16,735 crore in the same quarter last year, comfortably surpassing Street expectations of Rs 18,473 crore. The latest earnings underline the resilience of HDFC Bank’s core operations. Net interest income (NII) for the quarter ended December 31, 2025, rose 6.4 per cent year-on-year to Rs 32,620 crore, up from Rs 30,650 crore in the corresponding period a year ago. This growth was supported by stable margins and disciplined balance sheet management. Core net interest margin stood at 3.35 per cent on total assets, while margins measured on interest-earning assets came in slightly higher at 3.51 per cent. These figures indicate that the bank has managed to protect profitability even as funding costs and competitive pressures remain elevated across the banking sector. During the quarter under review, HDFC Bank reported interest income of Rs 76,751.16 crore, marking a modest 1 per cent increase year-on-year compared with Rs 76,007 crore in the same period last fiscal. While income growth was moderate, the bank benefited from tighter cost controls on the expense side. Interest expenses declined nearly 3 per cent year-on-year to Rs 44,136 crore, down from Rs 45,353 crore in the December quarter of the previous financial year. The reduction in interest outgo played a key role in supporting NII growth and overall profitability. The bank’s asset quality remained stable during the December quarter. Gross non-performing assets (GNPAs) stood at 1.24 per cent of gross advances as of December 31, 2025, unchanged from the level reported at the end of September 2025. Excluding NPAs from the agricultural segment, the GNPA ratio eased slightly to 0.97 per cent, compared with 0.99 per cent in the preceding quarter. On a year-on-year basis, asset quality showed improvement from 1.42 per cent as of December 31, 2024 (or 1.19 per cent excluding agricultural NPAs). Net NPAs were contained at 0.42 per cent of net advances as of December 31, 2025. On the income front, the bank reported healthy growth in net revenue. For the quarter ended December 31, 2025, net revenue increased by 8.9 per cent to Rs 45,870 crore, compared with Rs 42,110 crore in the corresponding quarter of the previous year, reflecting steady operational performance and improved earnings momentum.