Mumbai witnessed a positive financial quarter for three major banks. HDFC Bank, Yes Bank, and RBL Bank all reported improved profitability in the December quarter. Treasury gains, steady loan growth, and lower provisions supported their performance. However, operating costs rose due to expenses linked to new labor codes.
HDFC Bank Shows Robust Growth
HDFC Bank posted an 11.5% year-on-year rise in net profit. It reached Rs 18,654 crore in Q3 FY26, up from Rs 16,736 crore. Total income surged 33.4% to Rs 90,005 crore. A massive 144% jump in treasury profit to Rs 2,228 crore led this increase.
Net interest income grew over 6% to Rs 32,615 crore. Other income increased 16% to Rs 13,254 crore. Asset quality improved significantly. Gross NPAs declined to 1.24%, and net NPAs fell to 0.42%.
The bank's balance sheet crossed Rs 40 lakh crore. Advances rose 12% to Rs 28,21,446 crore. Deposits also increased 12% to Rs 28,60,055 crore. The CASA ratio stood at 34%. The credit-to-deposit ratio was about 99%.
In a management update, the bank announced that executive director Bhavesh Zaveri will step down. His term ends in April 2026.
Yes Bank Reports Strong Profit Surge
Yes Bank reported a net profit of Rs 952 crore for the quarter ended December 31, 2025. This represents a 55% year-on-year increase and a 45% sequential rise. Excluding a one-time Rs 155 crore gratuity provision under the new labor codes, profit after tax stood at Rs 1,068 crore.
Net interest income rose 11% to Rs 2,466 crore. Non-interest income increased 8% to Rs 1,633 crore. This included a Rs 555 crore gain from redemption of security receipts. Provisions fell dramatically by 92% to Rs 22 crore.
Deposits grew 5.5% to Rs 2,92,524 crore. Advances increased 5% to Rs 2,57,451 crore. The credit-to-deposit ratio was 88%.
RBL Bank Posts Significant Profit Growth
RBL Bank reported a net profit of Rs 214 crore in Q3 FY26. This compares with Rs 33 crore a year earlier and Rs 179 crore in the September quarter. Profit was impacted by one-off expenses of Rs 32 crore. These costs were linked to revised wage definitions under the new labor codes.
Total income rose to Rs 2,707 crore, up 2% year on year. Net interest income increased 5% to Rs 1,657 crore. Non-interest income stood at Rs 1,050 crore.
Deposits grew 12% to Rs 1,19,721 crore. Advances rose 14% to Rs 1,03,086 crore. The credit-to-deposit ratio was about 86%.
The December quarter results highlight a resilient banking sector. Despite challenges from labor code expenses, these banks managed to boost profits through strategic gains and controlled provisions.
