HDFC Bank Profit Rises to Rs 195.10 Billion, Narrowly Missing Estimates

HDFC Bank, India's largest private sector lender, reported a standalone net profit of 195.10 billion rupees for the quarter ended Sep 30, 2026, up from 186.41 billion rupees a year earlier. The result, published on Saturday, Oct 17, 2026, narrowly missed the analyst estimate of 195.26 billion rupees compiled by LSEG. Weaker treasury income and higher provisions offset strong growth in loans and deposits.

Treasury income falls sharply

Treasury trading gains fell to 7.8 billion rupees from 23.9 billion rupees a year earlier. Other income fell 3.6 percent to 138.31 billion rupees. That drop weighed on the quarter even as the core lending business grew.

Provisions for bad loans and other contingencies rose 2.1 percent to 35.74 billion rupees.

The profit rise works out to 4.7 percent on the Reuters calculation and about 5 percent in rounded reporting of the same standalone figures. In crore terms, the bank reported 19,510 crore rupees, up from 18,641 crore rupees a year earlier.

Loans and deposits grow fast

Net interest income rose 9.7 percent to 346.19 billion rupees. Total loans rose 16.3 percent from a year earlier and deposits grew 18.8 percent. The credit to deposit ratio stood at 96.0 percent, which means the bank had lent out most of the deposits it holds.

In total terms, deposits stood at 33,27,449 crore rupees at the end of September and advances stood at 31,95,566 crore rupees. Indian lenders as a group reported strong credit growth in the quarter across corporate and retail loans, Reuters said.

Asset quality improves

The gross non-performing asset ratio was 1.11 percent of gross advances at the end of September. That was better than 1.17 percent at the end of June and better than 1.24 percent a year earlier. The net non-performing asset ratio improved to 0.37 percent of net advances, from 0.42 percent a year earlier.

In plain terms, the share of loans classed as bad fell over both the quarter and the year, even as provisions rose slightly.

A new chief executive on Oct 27

The results come days before a leadership change at the Mumbai based lender. Anup Bagchi takes over as managing director and chief executive for three years from Oct 27, 2026. Bagchi, a veteran of the ICICI group and chief of ICICI Prudential Life Insurance, will be HDFC Bank's first external chief executive.

Reuters reported that Bagchi takes charge amid increased scrutiny of the bank's governance, profitability and operational performance. His first tasks will include deposit growth, funding costs and keeping loan growth strong without letting asset quality slip.