Highlights

• Profit after tax for the quarter increased year-on-year, supported by revenue growth.
• Deposits and advances recorded double-digit annual growth across key segments.
• Asset quality improved with declining gross and net NPA ratios during the quarter.

HDFC Bank Limited (NSE:HDFCBANK) reported profit after tax of ₹192.2 billion for Q4 FY26, marking a 9.1% increase compared to the corresponding quarter last year. Profit before tax stood at ₹251.9 billion for the quarter.

Net revenue for the quarter rose 5.0% year-on-year to ₹462.8 billion. Net interest income increased by 3.2% to ₹330.8 billion, while net interest margin was reported at 3.38% on total assets. Other income stood at ₹132.0 billion, supported by higher fees and commissions along with gains from trading activities.

Operating expenses increased to ₹184.8 billion, resulting in a cost-to-income ratio of 39.9%. Provisions and contingencies for the quarter were ₹26.1 billion, with a credit cost ratio of 0.35%.

Annual Performance Overview

For the full financial year FY26, the bank reported net revenues of ₹1,912.2 billion compared to ₹1,683.0 billion in FY25. Profit after tax for the year stood at ₹746.7 billion, reflecting a 10.9% increase year-on-year.

Consolidated profit after tax for FY26 was ₹760.3 billion, while consolidated net revenue reached ₹3,099.7 billion.

Balance Sheet Expansion Continues

The bank’s balance sheet size increased to ₹43,649 billion as of March 31, 2026, compared to ₹39,102 billion a year earlier.

Total deposits rose to ₹31,053 billion, marking a 14.4% year-on-year increase. CASA deposits accounted for 34.1% of total deposits, with savings deposits at ₹7,058 billion and current account deposits at ₹3,545 billion.

Average deposits for the quarter grew by 12.8% year-on-year to ₹28,511 billion. Time deposits increased by 15.5%, reflecting continued traction in term deposit growth.

Advances Growth Across Segments

Gross advances stood at ₹29,600 billion as of March 31, 2026, reflecting a 12.0% increase over the previous year. Advances under management grew by 10.2% year-on-year.

Retail loans expanded by 6.5%, while small and mid-market enterprise loans grew by 17.2%. Corporate and wholesale loans increased by 13.0%. Overseas advances accounted for 1.6% of total advances.

Asset Quality Trends Improve

Gross non-performing assets declined to 1.15% of gross advances as of March 31, 2026, compared to 1.24% in the previous quarter and 1.33% a year ago. Net non-performing assets stood at 0.38%.

The decline in NPA ratios indicates moderation in asset quality pressures during the quarter, including adjustments for agricultural segment exposures.

Capital Position and Dividend

The bank reported a capital adequacy ratio of 19.7% under Basel III norms, compared to 19.6% a year ago. Tier 1 capital ratio stood at 17.7%, while CET1 ratio was at 17.3%.

The board recommended a final dividend of ₹13.0 per equity share. Including the interim dividend of ₹2.50, total dividend for FY26 amounts to ₹15.5 per share.

Network and Subsidiary Performance

The bank’s distribution network expanded to 9,689 branches and 21,172 ATMs across 4,175 cities and towns. Around 50% of branches are located in semi-urban and rural areas.

Among subsidiaries, HDB Financial Services reported quarterly profit after tax of ₹7.5 billion, while HDFC Life Insurance recorded ₹5.0 billion. HDFC ERGO reported ₹1.6 billion profit for the quarter, and HDFC AMC reported ₹6.2 billion.

Technical Summary

HDFC Bank Limited is trading near ₹796.60, down around 0.41% on 20 April 2026, and remains significantly below the 51-day SMA near ₹852.43, while the 14-day RSI near 46.97 with Immediate support is placed in the ₹760.00–720.00 zone, while resistance is seen near the ₹840.00–880.00 range.

Source: TradingView

Key Risks

• Interest rate fluctuations may impact margins and borrowing costs.
• Asset quality deterioration could increase provisioning requirements.
• Regulatory changes may affect capital and operational frameworks.
• Global geopolitical events may influence economic conditions and credit demand.

Summary

HDFC Bank (NSE:HDFCBANK) reported growth in earnings for Q4 FY26, supported by higher revenues and expansion in advances and deposits. Asset quality improved with declining NPA ratios, while capital adequacy remained above regulatory requirements.

Operating expenses increased during the quarter, and loan growth was led by SME and corporate segments. The performance reflects steady balance sheet expansion alongside moderated profitability growth.

FAQs

1. What was HDFC Bank’s profit after tax in Q4 FY26?
   HDFC Bank reported a profit after tax of ₹192.2 billion, reflecting a 9.1% year-on-year increase.
2. How did HDFC Bank’s asset quality change in Q4 FY26?
   Gross NPA ratio declined to 1.15%, while net NPA ratio stood at 0.38%, indicating improvement.
3. What was the deposit growth for HDFC Bank in FY26?
   Total deposits increased by 14.4% year-on-year, reaching ₹31,053 billion as of March 31, 2026.