Investors in India's largest private sector lender, HDFC Bank, are bracing for a potentially weak opening on Tuesday, January 6, 2026. This follows a steep overnight decline in the bank's American Depositary Receipts (ADRs), which trade on US exchanges and represent ownership in the foreign company.
Sharp Decline in US Trading
HDFC Bank's ADR witnessed a significant drop of 6.33% on Monday, January 5, closing at $34.17. This marked the second consecutive session of losses for the ADR. The sell-off was triggered by the bank's release of its quarterly business updates for the third quarter of the fiscal year 2026 (Q3FY26). Back home on the Bombay Stock Exchange (BSE), the domestic share price had already reflected some caution, closing down 2.35% at ₹977.70 on the same day.
Q3FY26 Business Update: Key Figures
In its regulatory filing on January 5, HDFC Bank presented a mixed picture. On the growth front, the bank reported a year-on-year (YoY) increase of 11.9% in gross advances, which reached approximately ₹28,445 billion as of December 31, 2025. Advances under management stood at about ₹29,460 billion, a rise of 9.8%.
The deposit base also showed robust growth. Average deposits for Q3FY26 grew by 12.2% YoY to ₹27,524 billion. A closer look reveals that the average Current Account Savings Account (CASA) deposits, a low-cost source of funds, increased by 9.9% to ₹8,984 billion. Meanwhile, average time deposits saw a stronger growth of 13.4%, reaching ₹18,539 billion.
On a period-end basis, total deposits were up 11.5% at ₹28,595 billion, while period-end CASA deposits grew by 10.1% to ₹9,610 billion as of December 31, 2025.
Earnings Date and Analyst Expectations
The market will keenly await the full financial results, which HDFC Bank is scheduled to disclose on January 17, 2026. Analysts have provided preliminary estimates for the quarter. According to Systematix Research, the bank's profit after tax (PAT) may register a healthy growth of 11.2% YoY. Operating profit is projected to climb by 7.8%, while net interest income (NII) might see a more modest rise of 6.4%.
For context, in the previous quarter (Q2FY26), HDFC Bank had reported a 10% YoY growth in consolidated PAT to ₹19,610.67 crore, with NII growing 4.8% to ₹31,551.5 crore.
Share Price Performance and Trends
The stock's performance has been varied across different timeframes. Over a one-year period, HDFC Bank shares have gained 11.78%, outperforming the Sensex's 7.85% rise but underperforming the BSE Bankex, which surged 16.49%.
In the shorter six-month window, the stock has declined by 1.70%, contrasting with a 2.41% gain in the Sensex and a 6% rise in the Bankex. The stock touched its 52-week high of ₹1,020.35 on October 23 and a low of ₹812.13 on January 13 of the previous year.
It is noteworthy that the bank issued its first-ever bonus shares in a 1:1 ratio on August 26 last year, which adjusted the share price accordingly on the ex-date.
The sharp reaction in the ADR market, often a leading indicator for domestic sentiment, suggests that investors are weighing the growth metrics against potential concerns, setting the stage for a volatile session for the banking heavyweight.
