HDFC Bank, India’s largest private sector lender by assets, reported a 22% year-on-year increase in net profit to ₹18,503 crore for the January-March 2026 quarter, beating analyst estimates of ₹17,200 crore on the back of strong loan growth and improved asset quality.
Net interest income—the difference between interest earned and paid—grew 19% to ₹32,148 crore, while net interest margin (NIM) expanded 11 basis points sequentially to 3.74%, reversing a trend of compression seen after the merger with HDFC Ltd.
The bank’s advances grew 16.2% year-on-year to ₹28.4 lakh crore, with retail loans growing fastest at 21%. The bank’s digital channels—PhoneBanking, NetBanking, and mobile app—now account for 96% of all transactions, and the proportion of digital loan disbursals crossed 78%.
Asset quality improved markedly. The gross NPA ratio fell to 1.19% from 1.26% a quarter ago, while the net NPA ratio declined to 0.27%. Fresh slippages moderated to ₹4,100 crore, down 18% sequentially, reflecting a well-seasoned loan book.
Deposits grew 18% to ₹27.8 lakh crore, with the CASA (current account, savings account) ratio at 37.8%. The bank added 2.1 million new accounts in Q4 alone, driven by its rural expansion—HDFC Bank now has 9,143 branches across India.
Management guided for 16-18% credit growth in FY27, driven by housing, personal loans, and small business lending. The bank also declared a dividend of ₹22 per share for FY26, the highest in its history, totalling ₹49,000 crore in payouts to shareholders.
