India’s two largest private sector banks delivered mixed but largely steady results in the December quarter of FY26, reflecting a banking environment marked by moderate credit growth, stable deposits and improving asset quality.
HDFC Bank reported healthy profit growth, supported by higher lending and deposit expansion, while ICICI Bank saw a slight dip in profit despite stronger net interest income and improving loan quality. Together, the results highlight resilience in core banking operations even as margins and costs remain under pressure.
HDFC Bank reported an 11.4 percent year-on-year rise in net profit for the third quarter of FY26, with earnings reaching ₹18,653 crore, compared with ₹16,735 crore a year earlier.
Key highlights from HDFC Bank’s Q3 performance
Net interest income rose 6.4 percent to ₹32,620 crore, reflecting steady lending growth
Total income increased 2.9 percent year-on-year to ₹90,005 crore
Average deposits grew 12.2 percent to ₹27.52 lakh crore, showing continued customer inflows
Average advances under management rose 9 percent to ₹28.64 lakh-crore
The bank’s balance sheet size expanded to ₹40.89 lakh crore as of December 2025, up from ₹37.59 lakh crore a year earlier, underlining its continued scale expansion after the merger.
ICICI Bank reported a 4 percent decline in net profit for Q3 FY26, with earnings falling to ₹11,317 crore from ₹11,792 crore in the same quarter last year. The decline came despite healthy growth in core interest income.
Key highlights from ICICI Bank’s Q3 results:
Net interest income grew 7.7 percent to ₹21,932 crore
Total income rose 2 percent year-on-year to ₹49,334 crore
Total advances increased 11.5 percent year-on-year to ₹14.66 lakh crore
Retail loan portfolio grew 7.2 percent, accounting for 51.2 percent of total loans
On the positive side, ICICI Bank continued to strengthen its balance sheet quality. The net NPA ratio improved to 0.37 percent, compared with 0.42 percent a year ago, reflecting better recoveries and controlled slippages.
Deposits rose 9.2 percent year-on-year to ₹16.6 lakh crore, while average CASA deposits grew 8.9 percent, supporting stable funding.
Taken together, the Q3 results show that large private banks remain on solid footing, driven by steady credit demand and improving asset quality. While profit growth has diverged between lenders, the underlying trend points to stability rather than stress in the banking system as FY26 progresses.
