HDFC Bank, India’s largest private sector lender, delivered a steady performance in the third quarter of FY26. The bank reported net profit of ₹18,653.75 crore for the quarter ended December 2025, marking an 11.4% year-on-year (YoY) increase from ₹16,735.50 crore in the corresponding period last year, the lender said in an exchange filing today.

As per the release, net interest income (NII) of the lender rose 6.4% YoY to ₹32,615 crore, supported by healthy balance-sheet growth. Pre-provision operating profit (PPOP) increased 8.4% YoY to ₹27,097.80 crore from ₹25,000.40 crore a year ago. Non-interest income registered a strong growth of 15.7% YoY to ₹13,253.84 crore during the quarter.

Provisions and contingencies declined sequentially to ₹2,837.86 crore in Q3FY26 from ₹3,500.53 crore in the September quarter and were also lower than ₹3,153.85 crore reported in the year-ago period.

Asset quality showed mild sequential pressure. The gross NPA ratio remained unchanged at 1.24%, while the net NPA ratio was also flat at 0.42% quarter-on-quarter. In absolute terms, gross NPAs rose 2.6% sequentially to ₹35,178.98 crore, while net NPAs increased 4.7% to ₹11,981.75 crore.

The total deposits stood at ₹28,60,100 crore as of December 31, 2025, growing by 11.6% year-on-year. CASA deposits rose 10.1%, with savings account deposits at ₹6,61,700 crore and current account deposits at ₹2,99,500 crore.

As per the bank, gross advances rose 11.9% YoY to ₹28,44,600 crore, while advances under management increased 9.8%. Retail loans grew 6.9%, lending to small and mid-sized enterprises expanded 17.2%, and corporate and wholesale loans rose 10.3%. Overseas advances accounted for 1.7% of total advances.

On Friday, HDFC Bank shares closed 0.56% higher at ₹931.15 on the BSE, with a market cap of ₹14.32 lakh crore. The stock has gained 13.7% over the past year, outperforming the benchmark Nifty 50, which returned under 11% during the same period.