Mumbai, Jan 17 : Indiaâ??s largest bank by market capitalisation, HDFC Bank, on Saturday reported a 12.17 per cent rise year-on-year in net profit for the December quarter of the current financial year (Q3 FY26).

The bankâ??s consolidated net profit increased to Rs 19,806.63 crore in Q3, compared to Rs 17,656.61 crore in the same quarter last financial year (Q3 FY25).

The bankâ??s core income also showed steady growth during the quarter. Net interest income rose 6.4 per cent year-on-year to Rs 32,615 crore from Rs 30,653 crore in year-ago period.

HDFC Bank said its core net interest margin stood at 3.35 per cent on total assets and 3.51 per cent based on interest-earning assets.

Operating profit before provisions and contingencies grew 8.4 per cent to Rs 27,097.80 crore from Rs 25,000.40 crore in the year-ago period.

Provisions for the quarter declined by 10 per cent to Rs 2,837.9 crore, compared with Rs 3,153.85 crore in the same quarter last financial year.

On the asset quality front, the bank reported mixed trends. Gross non-performing assets declined 2.3 per cent YoY to Rs 35,178.98 crore from Rs 36,018.58 crore.

However, net NPAs rose marginally by 3.4 per cent to Rs 11,981.75 crore from Rs 11,587.54 crore a year ago.

The ratio of gross NPAs to gross advances improved to 1.24 per cent from 1.42 per cent, while net NPAs as a percentage of net advances stood at 0.42 per cent compared to 0.46 per cent last year.

According to the bankâ??s exchange filing, HDFC Bankâ??s total balance sheet size stood at Rs 40,890 billion as of December 31, 2025, up from Rs 37,590 billion a year earlier.

Average deposits grew 12.2 per cent year-on-year to Rs 27,524 billion, while CASA deposits increased by 9.9 per cent to Rs 8,984 billion.

The bankâ??s lending book also expanded steadily. Gross advances rose 11.9 per cent year-on-year to Rs 28,446 billion as of December 31, 2025.

/IANS