HDFC Bank delivered a stable financial performance for the December 2025 quarter, supported by consistent growth in interest income, deposits, and advances. Despite a challenging macro environment, the bank continued to strengthen its balance sheet while maintaining asset quality discipline.
Net Interest Income and Margins Remain Resilient
The bank’s net interest income (NII) rose 6.4% year-on-year to ₹32,620 crore compared with ₹30,650 crore in the corresponding quarter last year. Net interest margin stood at 3.35% on core assets and 3.51% on interest-earning assets, reflecting stable lending yields and cost management.
Profitability Shows Healthy Expansion
HDFC Bank recorded an 11.5% year-on-year increase in profit after tax, which climbed to ₹18,650 crore for the quarter. The growth in profitability was driven by higher interest income and controlled operating expenses, reinforcing the bank’s earnings momentum.
Deposit Base Continues to Strengthen
Average deposits for the December 2025 quarter stood at ₹27.5 lakh crore, marking a growth of approximately 12.2% over ₹24.5 lakh crore in the same quarter of the previous year. CASA deposits averaged ₹8.9 lakh crore, growing 9.9% year-on-year, while average time deposits rose 13.4% to ₹18.5 lakh crore. On a period-end basis, total deposits reached around ₹28.5 lakh crore as of December 31, 2025, registering an 11.5% annual growth. Period-end CASA deposits stood at approximately ₹9.6 lakh crore, up 10.1% year-on-year.
Advances Grow Across Key Segments
Gross advances increased 11.9% year-on-year to ₹28.4 lakh crore, led by balanced growth across segments. Retail loans grew by 9.6%, MSME lending expanded by a strong 17.2%, and wholesale or corporate loans rose by 10.3%, highlighting diversified credit expansion.
Asset Quality Remains Stable
The bank maintained healthy asset quality during the quarter, with the gross non-performing asset (GNPA) ratio remaining largely unchanged at 1.24% on a sequential basis, reflecting prudent risk management practices.
Stock Performance Compared to Benchmark
In 2025, HDFC Bank’s stock underperformed the NIFTY Bank index, delivering returns of nearly 14% compared to the index’s 18% gain, indicating muted market sentiment despite stable fundamentals.
A Leading Financial Institution in India
HDFC Bank remains one of India’s leading private sector banks, offering a comprehensive range of financial products and services. The bank leverages an extensive pan-India network of branches, ATMs, and digital platforms including phone banking, net banking, and mobile banking to serve its diverse customer base.
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