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The Housing Development Finance Corporation (HDFC) Bank’s performance for the third quarter of fiscal year 2026 (Q3FY26) has revealed the organization’s promising prospects. It showcased steady growth in both loans and deposits, backed by demands of the festive season and the recent tax cuts. The institution’s quarterly business wrap-up was made public on Monday, January 5.
Despite its steady operational performance, the stock opened lower, declining nearly 1.46% in early trade following the announcement.
The average advances under management (AUM) of the bank increased by 9.0% year-on-year (YoY) in Q3FY26 to Rs. 28,63,900 crores as compared to Rs. 26,27,600 crores in the same quarter last year.
At the end of the period, AUM amounted to Rs. 29,46,000 crores on December 31, 2025, showing a 9.8% increase compared to the previous year. This consistent growth indicates a careful loan increase as the bank continues to be prudent with its expansion and stability in the balance sheet following the merger.
The quarterly average of deposits recorded an increase of 12.2% year-on-year during the December 2025 quarter, reaching Rs. 27,52,400 crores and surpassing the Rs. 24,52,800 crore mark from a year ago.
This further asserted the bank’s ability in deposit mobilization. Among deposits, the annual increase in average current and savings account (CASA) balances was 9.9%, leading to an average of Rs. 8,98,400 crores. Growing average time deposits also caught attention, going at a rate of 13.4% YoY to Rs. 18,53,900 crores - a clear indication of higher preference for term deposits among customers.
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According to period-end figures, CASA deposits experienced a 10.1% rise YoY, reaching Rs. 9,61,000 crores, whereas time deposits marked a 12.3% increase in YoY with Rs. 18,98,500 crores. The movement reveals an intention to reinforce deposit attraction during a period of competitive liquidity conditions.
HDFC Bank will announce its Q3FY26 financial results on January 17. In a BSE filing, the company said its board will consider approving the unaudited standalone and consolidated results for the quarter and nine months ended December 31, 2025.
In Q2FY26, the lender reported a 10% YoY rise in consolidated net profit to Rs. 19,610.67 crore. Following the merger with parent HDFC in July 2023, the bank has consistently grown its deposits faster than loans to manage the loan-to-deposit ratio, a strategy that remains visible in the numbers of the latest quarter.
