MUMBAI: HDFC Bank reported an 11.46% year-on-year increase in net profit to Rs 18,653.75 crore in Q3 FY26 from Rs 16,735.50 crore a year earlier, on the back of treasury profits with loan growth and stable asset quality supporting earnings, even as operating costs rose sharply.On a sequential basis, profit was largely flat, inching up 0.07% from Rs 18,641.28 crore in the September quarter. Asset quality remained strong. Gross non-performing assets improved to 1.24% from 1.42% a year earlier, while net NPAs declined to 0.42% from 0.46%. Net interest margin was stable at 3.35% compared to 3.27% in the previous quarter.The balance sheet crossed the Rs 40 lakh crore mark during the quarter, with total assets rising to Rs 40,88,987 crore. Total advances grew 12.04% year on year to Rs 28,21,446 crore, while deposits increased 11.56% to Rs 28,60,055 crore. The CASA ratio stood at 33.6%. The credit-to-deposit ratio remained elevated at about 98.6%, reflecting continued strong credit deployment relative to deposit growth.Total income surged 33.42% from a year earlier to Rs 90,005 crore. Net interest income stood at Rs 32,615 crore, up 6.4% year on year, while other income rose 15.72% to Rs 13,253.84 crore, driven by treasury performance.Treasury profit rose 144% to Rs 2,227.60 crore from Rs 924.51 crore a year ago. Miscellaneous income, including recoveries from written-off accounts and banking charges, also contributed to the growth in non-interest income.Operating expenses climbed 63% year on year to Rs 18,771.04 crore, reflecting higher employee costs of Rs 7,203.17 crore and an estimated Rs 800 crore impact from the implementation of new labour codes. Despite this, the cost-to-income ratio stood at about 20.8% based on total income. Provisions and contingencies declined 10.02% from a year earlier to Rs 2,837.86 crore.
