MUMBAI, Jan 17, 2026, 15:37 IST
HDFC Bank posted an 11% year-on-year jump in standalone net profit for the December quarter, reaching 18,654 crore rupees, slightly above the Street estimate of 18,473 crore rupees. The profit was almost unchanged from 18,641 crore rupees in the previous quarter, according to The Economic Times. 1
Today’s earnings slate in India is packed, with over 20 firms set to release their numbers for the quarter ending Dec. 31, 2025. Notably, lenders ICICI Bank, Yes Bank, and IDBI Bank are all reporting results on Saturday, according to LiveMint. 2
The reason this matters is straightforward: big banks want to boost loans without overpaying for deposits. Investors have swiftly punished even the slightest sign that margins are stuck or funding costs are rising.
Upstox reported the bank’s net interest income climbed 6.4% year-on-year, reaching 32,620 crore rupees. The core net interest margin stood at 3.35% on total assets and 3.51% on interest-earning assets, it added. Gross advances increased by 11.9%, hitting roughly 28.4 lakh crore rupees. 3
Asset quality held firm, with the gross non-performing asset ratio dropping to 1.24% as of Dec. 31 from 1.42% a year earlier; NPAs refer to loans overdue on repayments. Provisions and contingencies declined to 2,840 crore rupees, buoyed by a 1,040-crore rupee release of contingent provisions linked to a large borrower group meeting certain conditions. Operating expenses came in at 18,770 crore rupees, Moneycontrol reported. Shares closed up 0.55% at 930.55 rupees on the NSE ahead of the earnings release. 4
Seema Srivastava, senior research analyst at SMC Global Securities, noted that profit growth is “expected to remain restrained” due to subdued non-interest income and limited treasury gains, which will offset steady core earnings. She also warned that deposit competition and high funding costs could hold back margin improvements, even if asset quality remains “healthy,” the report said. 5
But investors will keep zooming in on a key snag: some of the quarter’s provisioning relief stemmed from a one-off release. On top of that, regulatory tweaks to employee benefits are pushing up cost lines. Should deposit growth falter or slippages spike in areas like agriculture, margins and credit expenses could deteriorate fast.
Peers are highlighting just how much earnings hinge on provisions this cycle. Yes Bank saw its third-quarter profit soar 55%, driven by a steep decline in provisions for bad loans and contingencies, Reuters reported. 6
