Shares of HDFC Bank, India's largest private sector lender, experienced a decline during Monday's trading session on January 5, closing 1.64% lower at ₹984.60 per share. This drop occurred despite the bank releasing a quarterly business update that indicated steady and robust growth in its core lending and deposit figures for the third quarter of the fiscal year 2025-26 (Q3 FY26).
Robust Q3 FY26 Business Performance: Advances & Deposits Climb
According to an exchange filing made earlier today, HDFC Bank demonstrated solid financial momentum in the quarter ending December 31, 2025. The bank's average advances under management grew by approximately 9% year-on-year, reaching ₹28.64 lakh crore compared to ₹26.28 lakh crore in the same quarter last fiscal year. This metric includes loans adjusted for inter-bank participation certificates and securitised assets.
On a period-end basis, the growth was even more pronounced. Advances under management as of December 31, 2025, stood at ₹29.46 lakh crore, marking a 9.8% increase from ₹26.84 lakh crore a year earlier. More significantly, the period-end gross advances showed stronger expansion, rising by 11.9% to approximately ₹28.45 lakh crore, up from ₹25.43 lakh crore in December 2024. This faster growth in gross advances highlights the bank's sustained lending activity.
Deposit Growth Remains Strong, CASA and Term Deposits Rise
Complementing the healthy loan growth, HDFC Bank reported impressive traction in its deposit base. The average deposits for the December 2025 quarter rose to ₹27.52 lakh crore, up 12.2% from ₹24.53 lakh crore in Q3 FY25.
A breakdown reveals strength across deposit categories. Average Current Account Savings Account (CASA) deposits increased by 9.9% to ₹8.98 lakh crore. Meanwhile, average time deposits saw a sharper rise of 13.4%, climbing to ₹18.54 lakh crore from ₹16.35 lakh crore, underscoring a continued successful mobilisation of term deposits.
By the end of the quarter, total deposits had reached around ₹28.60 lakh crore, an 11.5% annual increase. Period-end CASA deposits were about ₹9.61 lakh crore, growing 10.1%.
Share Price Trend and Upcoming Results
The market's reaction, leading to the share price fall, comes amid near-term pressure on the stock. HDFC Bank's share price has declined by 1.53% over the past month and 0.58% over the last six months. However, the longer-term perspective remains positive, with the stock gaining over 15.52% in the last year and a significant 38% over five years.
The bank's stock, listed on both the NSE and BSE, had touched a 52-week high of ₹1,020.35 on October 23, 2025, and a 52-week low of ₹812.13 on January 13, 2025.
Investors are now keenly awaiting a comprehensive view of the bank's profitability and asset quality. HDFC Bank is scheduled to announce its full, unaudited financial results for Q3 FY26 on Saturday, January 17, 2026, following a board meeting. This earnings report is expected to provide a clearer picture beyond the operational metrics shared in the latest update.
