HDFC Bank, has reported a strong set of Q3 FY26 earnings, driven by robust growth in wholesale banking, steady retail performance, and improved asset quality.
The bank posted a 17.5% year-on-year (YoY) rise in net profit, highlighting resilience in core operations despite a challenging interest rate environment.
HDFC Bank Q3 FY26 Financial Highlights
Key Numbers at a Glance
- Net Profit: ₹18,853.75 crore
(+17.5% YoY | +1.3% QoQ) - Total Income: ₹90,095 crore
(+14.5% YoY) - Interest Earned: Up 13.3% YoY
- Gross NPA Ratio: Improved to 1.24% (vs 1.26% in Q2)
- Floating Provisions: ₹9,000 crore (9M FY26)
Segment-Wise Performance Breakdown
Wholesale Banking Leads Growth
The Wholesale Banking segment delivered a standout performance in Q3 FY26, with segment results jumping 42.9% YoY. This reflects improved credit demand from corporates, better risk management, and stable margins.
Wholesale banking continues to play a crucial role in supporting HDFC Bank’s profitability as corporate balance sheets remain healthy.
Retail Banking Remains Strong
- Retail Banking segment results rose 34.5% YoY
- Growth was supported by steady demand across home loans, personal loans, and vehicle finance
- Retail asset quality remained stable, helping control credit costs
Asset Quality Improves Further
HDFC Bank showed continued improvement in asset quality, with the gross NPA ratio declining to 1.24% from 1.26% in the previous quarter.
This improvement indicates:
- Better recovery performance
- Controlled slippages
- Conservative lending practices
Additionally, the bank created ₹9,000 crore in floating provisions during the nine months ended December 31, 2025, strengthening its balance sheet against future uncertainties.
Income Growth Driven by Core Lending
| Metric | Q3 FY26 | YoY Growth |
|---|---|---|
| Total Income | ₹90,095 crore | +14.5% |
| Interest Earned | — | +13.3% |
| Net Profit | ₹18,853.75 crore | +17.5% |
The growth in income was largely driven by core lending activities, reflecting healthy loan book expansion and stable interest margins.
What This Means for Investors and the Market
- Strong wholesale banking growth shows improving corporate credit demand
- Stable retail growth supports long-term earnings visibility
- Improving NPAs and higher provisions enhance balance sheet strength
- Conservative risk approach positions the bank well for economic volatility
Outlook
HDFC Bank’s Q3 FY26 performance underlines its consistent execution, strong risk controls, and diversified business model. With asset quality improving and both wholesale and retail segments delivering healthy growth, the bank remains well-positioned for the remainder of FY26.
As credit demand gradually picks up across sectors, HDFC Bank is expected to continue delivering stable and sustainable earnings growth.
This article is for informational purposes only and does not constitute investment advice.