Stock Report

HDFC Bank Limited Reports Strong Annual Performance for FY 2025-26

Posted On : 2026-04-18 20:59:46( TIMEZONE : IST )

HDFC Bank Limited (NSE: HDFCBANK, BSE: 500180), India's largest private sector lender, has announced its audited consolidated financial results for the fiscal year ended March 31, 2026. The bank delivered a robust performance characterized by a significant double-digit growth in annual net profit and steady improvement in asset quality.

Annual Financial Performance (FY26 vs. FY25)

The bank's full-year results reflect strong operational momentum across its diverse banking and insurance verticals.

Total Income: Increased to ₹4,95,462.81 crore, a growth of 5.2% compared to ₹4,70,915.93 crore in the previous fiscal year.

Net Profit: Surged to ₹76,025.97 crore for FY26, representing a 7.4% growth over the ₹70,792.25 crore reported in FY25.

Interest Earned: Grew to ₹3,48,615.15 crore, driven primarily by interest and discounts on advances and bills, which contributed ₹2,56,192.47 crore.

Earnings Per Share (EPS): Basic EPS rose to ₹49.50, up from ₹46.41 in the preceding year.

Quarterly Performance Highlights (Q4 FY26)

The fourth quarter concluded the fiscal year on a high note, with quarterly profits crossing the ₹20,000 crore mark.

Quarterly Net Profit: Recorded at ₹20,350.76 crore, a 10.2% increase compared to ₹18,454.88 crore in Q4 FY25.

Operating Profit: For the quarter, operating profit (before provisions) stood at ₹31,111.68 crore, compared to ₹29,378.75 crore in the same period last year.

Provisions: The bank maintained a prudent approach, with quarterly provisions and contingencies at ₹3,440.05 crore.

Asset Quality and Capital Position

HDFC Bank continues to demonstrate industry-leading asset quality metrics:

NPA Ratios: The Gross NPA ratio improved significantly to 1.15%, down from 1.33% in March 2025. The Net NPA ratio also strengthened to 0.38%, compared to 0.43% in the previous year.

Capital Adequacy: The bank remains well-capitalized with a Capital Adequacy Ratio (Basel III) of 19.71%, well above regulatory requirements.

Net Worth: The consolidated net worth of the bank grew to ₹5,46,325.46 crore as of March 31, 2026.

Segmental Highlights

Retail Banking: Remained the largest revenue driver, contributing ₹3,01,853.51 crore to the annual segment revenue.

Wholesale Banking: Generated a segment result (profit) of ₹33,947.96 crore for the year.

Insurance Business: This segment saw substantial activity, with premium and operating income reaching ₹84,160.02 crore for the full year.

Capital Adequacy:

The Bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.7% as on March 31, 2026 (19.6% as on March 31, 2025) as against a regulatory requirement of 11.9%. Tier 1 CAR was at 17.7% and Common Equity Tier 1 Capital ratio was at 17.3% as of March 31, 2026. Risk-weighted Assets were at₹29,741 billion.

DIVIDEND

The Bank paid a special interim dividend of 2.50 per equity share of 1 each (adjusted for bonus) on August 11, 2025. The Board of Directors have now recommended afinal dividend of 13.0 per equity share of ₹ 1 each for the year ended March 31, 2026. This would be subject to approval of the shareholders at the forthcoming annual general meeting. With this, the total dividend for the year ended March 31, 2026 would be 15.5 per equity share of 1 each.

NETWORK

As of March 31, 2026, the Bank's distribution network was at 9,689 branches and 21,172 ATMs across 4,175 cities / towns as against 9,455 branches and 21,139 ATMs across 4,150 cities / towns as of March 31, 2025, 50% of the branches are in semi-urban and rural areas. In addition, the Bank has 14,400 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,11,178 as of March 31, 2026 (as against 2,14,521 as of March 31, 2025).

ASSET QUALITY

Gross non-performing assets were at 1.15% of gross advancesces as on March 31, 2026 (0.91% excluding NPAs in the agricultural segment), as against 1.24% as on December 31, 2025 (0.97% excluding NPAs in the agricultural segment), and 1.33% as on March 31, 2025 (1.13% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.38% of net advances as on March 31, 2026.

Amongst the Bank's key subsidiaries, HDFC Life Insurance Company Ltd and HDFC ERGO General Insurance Company Ltd prepare their financial results in accordance with Indian GAAP and other subsidiaries do so in accordance with the notified Indian Accounting Standards ('Ind-AS'). The financial numbers of the subsidiaries mentioned herein below are in accordance with the accounting standards used in their standalone reporting under the applicable GAAP.

HDB Financial Services Ltd (HDBFSL), is a non-deposit taking NBFC in which the Bank holds a 74.1% stake. For the quarter ended March 31, 2026, HDBFSL's net revenue was at 30.6 billion. Profit after tax for the quarter ended March 31, 2026 was 7.5 billion compared to₹ 5.3 billion for the quarter ended March 31, 2025, a growth of 41.4%. Profit after tax for the year ended March 31, 2026 was 25.4 billion. The total loan book was 1,185 billion as on March 31, 2026. Stage 3 loans were at 2.44% of gross loans. Total CAR was at 21.4% with Tier-I CAR at 17.1%.

HDFC Life Insurance Company Ltd (HDFC Life), in which the Bank holds a 50.2% stake, is a leading life insurance solutions provider. Profit after tax for the quarter ended March 31, 2026 was 5.0 billion compared to ₹ 4.8 billion for the quarter ended March 31, 2025. Profit after tax for the year ended March 31, 2026 was 19.1 billion.

HDFC ERGO General Insurance Company Ltd (HDFC ERGO), in which the Bank holds a 50.3% stake, offers a range of general insurance products. Profit after tax for the quarter ended March 31, 2026 was 1.6 billion compared to ₹ 0.7 billion for the quarter ended March 31, 2025. Profit after tax for the year ended March 31, 2026 was 8.1 billion.

HDFC Asset Management Company Ltd (HDFC AMC), in which the Bank holds a 52.4% stake, is the Investment Manager to HDFC Mutual Fund, and offers a comprehensive suite of savings and investment products. For the quarter ended March 31, 2026, HDFC AMC's Quarterly Average Assets Under Management were approximately 9,275 billion. Profit after tax for the quarter ended March 31, 2026 was 6.2 billion compared to ₹ 6.4 billion for the quarter ended March 31, 2025. Profit after tax for the year ended March 31, 2026 was 28.6 billion.

HDFC Securities Ltd (HSL), in which the Bank holds a 94.0% stake, is amongst the leading broking firms. For the quarter ended March 31, 2026, HSL's total revenue was 8.5 billion. Profit after tax for the quarter ended March 31, 2026 was 2.7 billion, as against 2.5 billion for the quarter ended March 31, 2025. Profit after tax for the year ended March 31, 2026 was ₹9.3 billion.

Shares of HDFC Bank Limited was last trading in BSE at Rs. 799.90 as compared to the previous close of Rs. 795.50. The total number of shares traded during the day was 1590072 in over 34208 trades.

The stock hit an intraday high of Rs. 803.90 and intraday low of 788.30. The net turnover during the day was Rs. 1271122723.00.