HDFC Bank (HDFCBANK) Q4 25/26 earnings summary

Executive summary

• Net profit for FY26 rose 10.9% year-over-year to ₹746.7 billion; consolidated profit after tax reached ₹760.3 billion.

• Q4 FY26 profit after tax reached ₹192.2 bn, up 9.1% year-over-year and 3.1% sequentially.

• System credit growth estimated at 10.5%-11.5%, actual growth achieved was 12%, up from 5.5% last year.

• Return on assets at 1.96% for Q4 and 1.15% for FY26; return on equity at 14.1% for Q4.

• Significant investments in technology, distribution, and a major merger have nearly doubled branches and customers.

Financial highlights

• Net interest income for Q4 FY26 grew 3.2% year-over-year to ₹330.8 billion; net interest margin at 3.38%.

• Deposit growth rate at 14.4%, outpacing credit growth and system average.

• Gross advances grew 12.0% year-over-year to ₹29,600 billion; deposits rose to ₹31,053 billion.

• Cost-to-income ratio at 39.9% for Q4 FY26; core cost-to-income ratio at 39.5%-39.9%.

• Asset quality remains strong with gross NPAs at 1.15%, net NPA at 0.38%.

Outlook and guidance

• Confident of sustaining positive growth momentum, with focus on both corporate and retail segments.

• Growth trajectory expected to remain above sector average, barring major geopolitical disruptions.

• Target to be carbon neutral by FY32; focus on sustainable finance and enhanced ESG disclosures.

• Board approved issuance of up to ₹60,000 crore in bonds for capital and infrastructure financing.

• Continued emphasis on granular, sustainable deposit mobilization and corporate governance.