HDFC Bank FY26: PAT up 10.9%, deposits +14.4%

FY26 results: growth led by steady core momentum

HDFC Bank Limited reported strong standalone and consolidated results for the year ended March 31, 2026, backed by healthy growth in loans and deposits and stable asset quality. For investors, the key takeaway was the combination of double-digit expansion in the balance sheet and resilient credit metrics at a time when loan demand in India improved in the second half of the year. The bank’s disclosures also highlighted the continued importance of deposit accretion and the composition of funding through CASA and time deposits.

Standalone financial performance for FY26

On a standalone basis, HDFC Bank reported net revenues of ₹1,912.2 billion for the year ended March 31, 2026. Profit after tax (PAT) came in at ₹746.7 billion, up 10.9% over the prior year. The full-year performance was accompanied by a significant balance sheet expansion, with management commentary pointing to broad-based growth across core lending segments and deposit categories.

March 2026 quarter: revenue and profit rose year-on-year

For the March 2026 quarter, standalone net revenue stood at ₹462.8 billion. PAT for the quarter was ₹192.2 billion, up 9.1% year-on-year. The quarter’s numbers were presented alongside a business update that focused on advances and deposit momentum, especially as the sector tracked the pace of credit growth and funding costs.

Balance sheet scaled up to ₹43,649 billion

HDFC Bank’s balance sheet size increased to ₹43,649 billion as of March 31, 2026. Total deposits were reported at ₹31,053 billion, reflecting 14.4% growth, while advances rose to ₹29,600 billion, up 12.0%. The bank described the expansion as broad-based, indicating that growth was not limited to a single product or geography within its franchise.

Deposits: mix, CASA share, and funding stability

CASA deposits formed 34.1% of total deposits, supporting funding stability even as time deposits grew faster. Period-end CASA deposits were cited as up 12.3% year-on-year, with savings account deposits at ₹7,058 billion and current account deposits at ₹3,545 billion. The commentary also indicated that while CASA grew in absolute terms, the faster pace of time deposit growth influenced the overall mix.

Advances: retail-led demand in a stronger second half

The bank’s disclosures linked demand conditions to the second half of the fiscal year, noting that loan demand in India accelerated as inflation declined and taxes reduced, supporting household spending and corporate borrowing. HDFC Bank’s advances increased 12% year-on-year, with growth primarily driven by retail loans such as mortgages and personal loans. This matters because retail-led growth typically requires sustained deposit momentum to support balance sheet expansion without raising funding risks.

Asset quality: gross NPAs at 1.15%, net NPAs at 0.38%

Asset quality was described as resilient, with gross non-performing assets (NPAs) at 1.15% of advances and net NPAs at 0.38% of advances. These ratios provide a snapshot of credit costs risk and the health of the loan book, especially during phases when loan growth accelerates. The bank’s update did not indicate any spike in stress indicators within the disclosed metrics.

Business update: advances under management and deposit trends

In its exchange filing for the March 2026 quarter, the bank reported average advances under management at ₹29,640 billion, around 10% higher than ₹26,960 billion in the corresponding period last year. Period-end advances under management were approximately ₹30,580 billion as of March 31, 2026, up 10.2% from ₹27,730 billion a year ago. Period-end gross advances were about ₹29,600 billion, growing 12.0% from ₹26,440 billion as of March 31, 2025.

On the liabilities side, average deposits for the March 2026 quarter were ₹28,510 billion, up 12.8% from ₹25,280 billion a year earlier. Within this, average CASA deposits were ₹9,180 billion, up 10.8% from ₹8,290 billion, while average time deposits were ₹19,330 billion, up 13.7% from ₹16,990 billion. Period-end total deposits were cited at approximately ₹31,060 billion as of March 31, 2026, up 14.4% from ₹27,150 billion, while period-end time deposits were about ₹20,450 billion, up 15.5% from ₹17,700 billion.

Macro and sector context mentioned in updates

The broader context referenced in the material included an easing inflation environment and policy-related tailwinds such as reduced taxes that supported consumption and borrowing in the second half. Separately, some updates for later periods referenced system credit and deposit trends and noted that deposit growth could outpace loan growth during certain quarters. The material also included references to subsequent quarters and market commentary on net interest income (NII) expectations for large private banks, indicating that investors are monitoring the pace of growth alongside margin dynamics.

Key numbers at a glance

Why these disclosures matter for investors

For banks, the interaction between loan growth, deposit growth, and asset quality is central to understanding sustainability. In HDFC Bank’s FY26 disclosures, deposits grew faster than advances on a period-end basis, while CASA remained a meaningful portion of total deposits. At the same time, gross and net NPA ratios were kept at low levels in the reported numbers, which helps frame the quality of growth.

The updates around advances under management and the split between CASA and time deposits give additional visibility into how the balance sheet is being funded and expanded. Investors typically track whether deposit growth keeps pace with lending growth, and how the mix of low-cost CASA versus time deposits shifts over time, particularly during changing rate conditions.

Conclusion

HDFC Bank’s FY26 results showed standalone net revenues of ₹1,912.2 billion and PAT of ₹746.7 billion, alongside balance sheet growth to ₹43,649 billion. Deposits rose 14.4% to ₹31,053 billion, advances increased 12.0% to ₹29,600 billion, and asset quality stayed resilient with gross NPAs at 1.15% and net NPAs at 0.38%. Future updates from the bank and the industry will continue to be tracked for the pace of deposit mobilisation, the CASA mix, and loan growth trends as demand conditions evolve.