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HDFC Bank, the country’s largest private bank, has released the results for the fourth quarter (Q4) of the financial year 2025-26. The bank’s standalone net profit increased by 9% to Rs 19,221 crore for the quarter ending March 31, 2026. It was Rs 17,616 crore in the same quarter of the last financial year.
The bank has declared a final dividend of Rs 13 per share for the financial year 2026. The record date for its payment has been fixed as June 19, 2026. Earlier, the bank has also given a special interim dividend of Rs 2.5 per share in August 2025. In this way investors will get a total dividend of Rs 15.5 in the whole year.
HDFC Bank’s revenue increased by 5%
HDFC Bank’s total net revenue has increased by 5% year-on-year to Rs 46,280 crore. It was Rs 44,090 crore in the March quarter last year.
The main income of the bank i.e. Net Interest Income (NII) also increased by 3.2% to Rs 33,080 crore. The bank’s Net Interest Margin (NIM) on total assets stood at 3.38%.
Asset quality improved, NPA reduced
The asset quality of the bank has improved in the fourth quarter. The gross non-performing assets (NPA) of the bank has come down from 1.24% to 1.15%.
Whereas the net NPA till March 2026 remained 0.38%. The bank has set aside Rs 2,610 crore as provisions and contingencies for this quarter. The total credit cost ratio of the bank was 0.35%.
Excellent growth of 12.8% in deposits
A good increase has been seen in the average deposits of the bank. Average deposits in the March 2026 quarter stood at Rs 28.5 lakh crore, which is 12.8% more than last year.
Similarly, the average CASA (Current Account and Savings Account) deposits of the bank have also reached Rs 9.18 lakh crore with a growth of 10.8%.
Capital position strong, CAR at 19.7%
The bank’s capital adequacy ratio (CAR) stood at 19.7%, which is much higher than the regulatory requirement of 11.9%. This reflects the strong financial position of the bank.
The bank’s Tier-1 CAR is recorded at 17.7% and Common Equity Tier-1 capital ratio is 17.3%.
Bank’s network reached 9,689 branches
- The bank has also expanded its distribution network. The total branches of the bank have increased to 9,689 by March 31, 2026, from 9,455 a year ago.
- Similarly, the number of ATMs has also increased from 21,139 to 21,172. The bank is now offering its services in 4,175 cities and towns of the country.
- HDFC Bank provides banking and financial services. The founder of the bank is Hasmukhbhai Parekh. He established this bank in 1994.
What is Net Interest Margin and CASA?
NIM: This is an important measure of the bank’s earnings. The difference between the rate at which the bank gives loans and the rate at which it pays interest to depositors is called net interest margin.
CASA: It means ‘Current Account and Savings Account’. The money deposited in this is a cheaper fund for the bank because it has to pay less interest on it. The bank which has higher CASA ratio has more chances of increasing its profits.
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.
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