HDFC Bank Q3 results: Profit jumps 11% to Rs 18,653 crore; asset quality improves

India’s largest private sector lender, HDFC Bank, on Saturday reported its numbers for the October-December quarter, posting a standalone net profit of Rs 18,653 crore for the quarter ended December 31, 2025, marking an 11.5 per cent increase compared to the Rs 16,736 crore reported in the corresponding quarter of the previous financial year.

The Net Interest Income (NII) came in at Rs 32,615 crore, up 6.4 per cent from Rs 30,653 crore in the year-ago period. The bank reported Gross Non-Performing Assets (NPA) at Rs 35,179 crore, which is 1.24 per cent of gross advances. This is an improvement from the 1.42 per cent recorded in the previous year.  

The Net NPA stood at Rs 11,981.8 crore, translating to a ratio of 0.42 per cent.

The bank’s operating expenses for the quarter stood at Rs 18,771.04 crore. The bank recognised an estimated incremental impact of Rs 800 crore under 'Employees cost' during the quarter. This was done to facilitate the assessment of the financial impact arising from the 'New Labour Codes' notified by the Government of India, consolidating existing labour laws.

The bank also announced the retirement of Bhavesh Zaveri, Executive Director. Zaveri informed the board that he seeks to explore opportunities outside the banking sector and will not seek re-appointment. He is set to retire from his position effective from the close of business hours on April 18, 2026.

The bank remains well-capitalised with a total Capital Adequacy Ratio (CAR) of 19.87 per cent as of December 31, 2025, significantly above the regulatory requirement. The Tier 1 CAR stood at 17.8 per cent.