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HDFC Bank, the country’s largest private sector lender, has declared the results of the third quarter (Q3FY26) of the financial year 2025-26 on Saturday (January 17). The bank’s standalone net profit in the December quarter increased by 11.5% year-on-year to Rs 18,654 crore.
In the same quarter last year, the bank had earned a net profit of Rs 16,735 crore. The bank’s results were better than market expectations, as experts had expected a profit of around Rs 18,473 crore.
Executive Director Bhavesh Javeri will take retirement
The bank has also shared important information along with the results. Bank’s Executive Director Bhavesh Javeri has decided to retire. He will leave his post on 18 April 2026.
Zaveri has been associated with the bank for a long time and has played a key role in the bank’s operations and business strategy. The Board has appreciated his contribution.
Improvement in asset quality, relief on NPA front
There has been an improvement in the asset quality of the bank this quarter. The gross non-performing assets (GNPA) of the bank has decreased compared to the September quarter.
The health of the bank’s loan book remains good, which has also brought stability in the provisioning (amount kept aside for bad loans). The bank said that the demand for loans in rural and semi-urban areas remains strong.
third HDFC Bank in the quarter Profit increased by 11%
on an annual basis
| HDFC Bank | FY26 (October-December) | FY25 (October-December) | Change (%) |
| interest income | ₹76,751 | ₹76,006 | 1% |
| other income | ₹13,253 | ₹11,453 | 16% |
| total income | ₹90,005 | ₹87,460 | 3% |
| total expenses | ₹62,907 | ₹62,460 | 1% |
| net profit | ₹18,654 | ₹16,736 | 11% |
| Gross NPA | ₹35,178 | ₹36,018 | -2% |
| Gross NPA % | 1.24% | 1.42% | – |
| Net NPA | ₹11,981 | ₹11,587 | 3% |
| Net NPA % | 0.42% | 0.46% | – |
on quarterly basis
| HDFC Bank | FY26 (October-December) | FY26 (July-September) | Change (%) |
| interest income | ₹76,751 | ₹76,690 | 0.07% |
| other income | ₹13,253 | ₹14,350 | -7.6% |
| total income | ₹90,005 | ₹91,040 | -1.1% |
| total expenses | ₹62,907 | ₹63,117 | -0.3% |
| net profit | ₹18,654 | ₹18,641 | 0.06% |
| Gross NPA | ₹35,178 | ₹34,289 | 2.59% |
| Gross NPA % | 1.24% | 1.24% | – |
| Net NPA | ₹11,981 | ₹11,447 | 4.6% |
| Net NPA % | 0.42% | 0.42% | – |
Note: Figures are in crores of rupees.
Double digit growth in deposits and advances
According to the bank’s business update, by the end of the December quarter, the bank’s gross advances (loans given) have increased by 11.9% on an annual basis to Rs 28.4 lakh crore.
At the same time, a good increase of 11.5% has been seen in the total deposits of the bank and it has become Rs 28.5 lakh crore. CASA (Current Account and Savings Account) deposits of the bank also increased to Rs 9.6 lakh crore.
Interest income also increased
The bank’s Net Interest Income (NII), which is the difference between interest income and interest expenditure, is expected to grow by about 4-8%. The net interest margin (NIM) of the bank remains stable.
Analysts say that after the merger, the bank is now managing its balance sheet in a better way and has a special focus on raising deposits.
Focus on digital banking and retail loans
Regarding future plans, the bank said that it will further strengthen its digital banking platform. In the coming time, the bank wants to further increase its hold in the retail loan portfolio and MSME sector. The bank aims to further reduce its cost-to-income ratio so that the profit momentum is maintained.
HDFC Bank shares in consolidation phase
According to market experts, HDFC Bank stock is currently in a ‘consolidation’ phase. After good results, this stock will be under watch in the stock market on Monday. The stock has given sluggish returns to investors in the last one year, but recovery is expected due to improvement in earnings.
What is Non Performing Asset or NPA?
When a person or organization takes a loan from a bank and does not return it, it is called bad loan or non-performing asset or NPA. This means that the chances of recovery of these loans are very less. As a result, banks lose money and go into losses.
According to the rules of the Reserve Bank of India (RBI), if the installment of a bank loan is not repaid for 90 days i.e. three months, then that loan is declared NPA. In case of other financial institutions this limit is 120 days. Banks have to do this to clear the books.
HDFC Bank has more than 9,092 branches in the country.
HDFC Bank provides banking and financial services. The founder of the bank is Hasmukhbhai Parekh. He established this bank in 1994. Its head quarter is in Mumbai. The managing director and chief executive officer (CEO) of the bank is Shashidhar Jagadishan. HDFC Bank has more than 9,092 branches and 20,993 ATMs in the country.
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