Marginally missing analysts’ estimates HDFC Bank Ltd, India’s biggest private sector lender, for the quarter ended September 30, 2026 reported 4.7% Year on Year (YoY) growth in standalone net profit at ₹19,510 crore.
The performance was impacted as treasury trading gains during the quarter sharply fell to ₹780 crore from ₹2,390 crore a year ago. Also the Bank had to make higher provisions of ₹3,574 crore, up 2.1% YoY towards bad loans.
In a sudden development the Bank’s Deputy Managing Director Kaizad Bharucha announced to step down from December 31,2026. The Board has accepted his resignation.
Mr Bharucha, who has been with the Bank for over three decades was among the two candidates recommended by the board for the post of MD & CEO to the Reserve Bank of India (RBI). The RBI had cleared the candidature of Anup Bagchi from ICICI Group who will take over as MD & CEO of HDFC Bank from October 27,2026 onwards.
The current MD & CEO Sashidhar Jagdishan will demit office on October 2026. This was his last quarterly result at the Bank. Speaking over a conference call, on a rare occasion, he said the landmark merger between HDFC Ltd and the Bank had been completed and the Bank had seen very, very strong credit quality across cycles, across regimes. He said the business momentum in retail and MSME was moving in the right direction. He also stated that the Bank was poised for faster growth.
“Post merger, of course, even though the balance sheet changes and the transformation changes, it is still underway. But I would believe that a lot of it is behind us. We still have some work to do,” he added.
The Bank’s Net interest income (NII) for the quarter grew by 9.7% to ₹ 34, 619 crore.
Net interest margin was at 3.16% on total assets, and 3.32% based on interest earning assets.
The Bank’s average deposits grew 16.8% YoY. It’s advances rose 14.1% YoY.
Advances under management grew by 15.3% over September 30, 2025. Retail loans grew by 11.7%, small and mid-market enterprises loans grew by 23.5% and corporate and other wholesale loans grew by 16.4%. Overseas advances constituted 3.3% of total advances, the Bank said.
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as on September 30, 2026 (20.0% as on September 30, 2025) as against a regulatory requirement of 11.9%.
Tier 1 CAR was at 17.2% and Common Equity Tier 1 Capital ratio was at 17.1% as of September 30, 2026.
Gross NPA rose 4.43% YoY to ₹35,810 crore and Net NPA rose 3.43% to ₹11,851 crore.
The consolidated profit after tax for the quarter ended September 30, 2026 was ₹20,700 crore, up 5.55% YoY.
Published - October 17, 2026 09:27 pm IST