HDFC Bank reported a 4.7% year-on-year rise in standalone net profit for the quarter ended September 30, 2026, as strong loan and deposit growth helped offset weaker treasury income and higher provisions.
The private-sector lender posted a standalone net profit of ₹195.10 billion for the quarter, compared with ₹186.41 billion a year earlier. The result was broadly in line with market expectations.
Loan and deposit growth remains strong
Net interest income rose 9.7% year-on-year to ₹346.19 billion. Total loans increased 16.3%, while deposits grew 18.8% from a year earlier.
The bank’s credit-to-deposit ratio stood at 96%, reflecting continued balance-sheet growth across lending segments.
Treasury income weighs on earnings
Despite the strong core banking performance, treasury trading gains declined sharply to ₹7.8 billion from ₹23.9 billion a year earlier. Other income fell 3.6% to ₹138.31 billion.
Provisions for bad loans and other contingencies rose 2.1% to ₹35.74 billion, adding some pressure to quarterly profit growth.
Asset quality improves
HDFC Bank’s gross non-performing asset ratio improved to 1.11% at the end of September, compared with 1.17% at the end of the June quarter.
The improvement in asset quality comes as Indian lenders continue to report healthy credit demand across both retail and corporate segments.
Leadership transition ahead
The bank also said Deputy Managing Director Kaizad Bharucha will step down at the end of December after more than three decades with HDFC Bank.
Anup Bagchi, a long-time banking executive from the ICICI group, is set to take over as Managing Director and CEO for a three-year term from October 27. He will become HDFC Bank’s first external chief executive.
The leadership transition will be closely watched by investors as the bank focuses on profitability, governance and operational performance while managing rapid balance-sheet growth.
Source: This report is based on HDFC Bank disclosures and reporting published by Reuters on October 17, 2026.
