Earnings Review
Other income, low provisions lift HDFC Bank Q3 PAT over mkt view
This story was originally published at 16:52 IST on 17 January 2026
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--HDFC Bank Oct-Dec net profit INR 186.54 bln
--Analysts saw HDFC Bank Oct-Dec net profit at INR 183.96 bln
--HDFC Bank Oct-Dec net profit INR 186.54 bln vs INR 167.36 bln year ago
--HDFC Bank Oct-Dec total income INR 900.05 bln vs INR 874.60 bln year ago
--HDFC Bank Oct-Dec provisions INR 28.38 bln vs INR 31.54 bln year ago
--HDFC Bank gross NPA ratio 1.24% as on Dec 31, unchanged on qtr
--HDFC Bank net NPA ratio 0.42% as on Dec 31, unchanged on qtr
--HDFC Bank Basel-III capital adequacy ratio 19.87% as on Dec 31
--HDFC Bank Apr-Dec net profit INR 554.50 bln vs INR 497.31 bln year ago
--HDFC Bank Apr-Dec total income INR 2.80 tln vs INR 2.57 tln year ago
--HDFC Bank saw impact of INR 8 bln in Oct-Dec from new labour codes
--HDFC Bank Oct-Dec core net interest margin on interest earning assets at 3.51%
--HDFC Bank Oct-Dec core net interest margin on total assets at 3.35%
--HDFC Bank Oct-Dec net interest income INR 326.2 bln, up 6.4% on year
By Krity Ambey
NEW DELHI – A sharp rise in other income and a decline in provisions lifted HDFC Bank Ltd.'s net profit for the December quarter above Street estimates. The lender's bottom line rose 11.5% on year to INR 186.54 billion, compared with analysts' expectations of INR 184 billion.
On a sequential basis, however, net profit remained largely flat. India's largest private-sector bank had reported a profit of INR 186.41 billion in the September quarter.
Other income climbed 15.7% on year to INR 132.54 billion during the December quarter, while interest income grew only marginally to INR 767.51 billion from INR 760.07 billion a year ago. This took the bank's total income for the December quarter to INR 900.05 billion, up 3% on year. The bank's net interest income, which grew 6.4% on year to INR 326.20 billion, was exactly in line with analysts' estimate for the December quarter.
The lender's net interest margin improved to 3.35% in the quarter ended Dec. 31 from 3.27% in the trailing quarter. The bank also reported a 3.51% margin based on interest-earning assets.
HDFC Bank's provisions fell 10% on year to INR 28.38 billion in the reporting quarter. Sequentially, the lender's provisions were down 19% from INR 35.01 billion in the trailing quarter.
The bank's total expenses for the December quarter rose marginally to INR 629.07 billion from INR 624.60 billion a year ago, which included operating cost of INR 187.71 billion and employee cost of INR 72.03 billion. The bank also declared an impact of INR 8 billion, factored under employee cost, on account of new labour codes notified in November. "The bank continues to monitor the finalisation of central and state (governments') rules and clarifications on the new labour codes and would provide appropriate accounting effect on the basis of such developments, as needed," HDFC Bank said in a press release.
The bank's asset quality ratio in the December quarter improved slightly from a year ago but was unchanged from the trailing quarter. Its gross non-performing asset ratio was 1.24% as of Dec. 31, compared with 1.42% a year ago. The net non-performing asset ratio improved to 0.42% as of Dec. 31, from 0.46% last year. The lender reported a capital adequacy ratio of 19.87% as of Dec. 31.
For the Apr–Dec period, HDFC Bank's net profit was INR 554.50 billion, up 11.5% on year. The lender's total income for the period was up 9.2% at INR 2.80 trillion. Shares of the bank, which declared its earnings Saturday, had ended 0.6% higher on Friday at INR 931.10 on the National Stock Exchange. End
Edited by Ashish Shirke
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