HDFC Bank has announced impressive financial results for the third quarter ending December 2025. The bank's net profit after tax climbed by 11.5 percent to reach Rs 18,653.75 crore. This marks a significant increase from the Rs 16,735.50 crore recorded in the same period last year.
Strong Growth Across Loan Segments
The bank demonstrated robust expansion in its loan portfolio during the quarter. Retail loans grew by a solid 6.9 percent. Small and mid-market enterprise loans showed even stronger performance with a 17.2 percent rise. Corporate and other wholesale loans increased by 10.3 percent.
Overall gross advances reached Rs 28,44,600 crore as of December 31, 2025. This represents an 11.9 percent growth from the previous year. Overseas advances constituted 1.7 percent of the total advances.
Deposit Growth and Net Interest Income
Deposits also showed healthy growth, increasing by 11.6 percent to Rs 28,60,100 crore. Net interest income, which is the difference between interest earned and interest expended, rose by 6.4 percent to Rs 32,620 crore. This compares favorably to the Rs 30,650 crore reported in the corresponding quarter of 2024.
The core net interest margin stood at 3.35 percent on total assets. Based on interest-earning assets, it was slightly higher at 3.51 percent.
Improved Asset Quality Metrics
HDFC Bank reported improved asset quality during the quarter. Gross non-performing assets declined to 1.24 percent of gross advances. This represents a reduction from the 1.42 percent recorded on December 31, 2024.
Net non-performing assets also showed improvement, dropping to 0.42 percent from 0.46 percent in the year-ago period.
Operating Expenses and Capital Ratios
Operating expenses for the quarter totaled Rs 18,770 crore. Excluding the estimated impact of Rs 800 crore for employee benefits under the New Labour Code, operating expenses were Rs 17,970 crore. This compares to Rs 17,110 crore in the same quarter of the previous year.
The bank maintained strong capital adequacy ratios. The total Capital Adequacy Ratio under Basel III guidelines was 19.9 percent as of December 31, 2025. This is slightly lower than the 20 percent reported in the year-ago quarter.
Tier 1 CAR stood at 17.8 percent. The Common Equity Tier 1 capital ratio was 17.4 percent as of the quarter end.
These results demonstrate HDFC Bank's continued strong performance across multiple business segments. The bank has managed to grow its profit while maintaining healthy asset quality and capital ratios.
