HDFC Bank’s shares are set to remain in focus after it reported its quarterly earnings for the last quarter of FY26. In a quarter that saw the sudden exit of the Chairman, the bank delivered higher profit on strong opex growth and provisions. However, the net interest income (NII) came in lower than estimated.
HDFC Bank Q4 performance
India’s leading private lender posted a net profit of Rs 19,221 crore in Q4, a growth of 9% year-over-year (YoY) from Rs 17,616 crore reported in the same quarter a year back.
However, the bank’s interest income stood at Rs 76,610 crore in the fourth quarter of FY26, a decline of 1.1% YoY from Rs 77,460 crore in the same quarter last year.
The lender’s NII came in at Rs 33,082 crore in Q4, a surge of 3.2% compared to Rs 32,006 crore in Q4 FY25. Operating profit stood at Rs 27,802 crore, up 4.8% YoY from Rs 26,537 crore. Provisions for the quarter declined to Rs 2,609 crore from Rs 3,193 crore in the year-ago period, reflecting an 18% reduction.
HDFC Bank declared dividend
The Board of Directors has recommended a final dividend of Rs 13 per equity share of face value Re 1 for the year ended March 31, 2026, subject to shareholder approval. With this, the total dividend for FY26 stands at Rs 15.50 per equity share. The record date to determine eligible shareholders for the dividend has been set as Friday, June 19, 2026.
HDFC Bank share price performance
The share price of HDFC Bank surged 1.3% in the last five trading sessions. The stock has increased 2.5% in the past one month. However, the stock has dropped 21% in the last six months and has erased 17% of investors’ wealth over the previous 12 months.
HDFC Bank: Governance concerns a matter of past?
HDFC Bank’s former part-time Chairman, Atanu Chakraborty, on March 18, resigned citing “ethical concerns” and “incongruence”. Investigations revealed that bank officials, particularly in Dubai and Bahrain, improperly sold high-risk, perpetual AT1 bonds, marketing them as safe, fixed-maturity products to NRI investors. This resulted in significant investor losses linked to Credit Suisse.
HDFC Bank Q3FY26
The private lender reported an increase of 11.5% year-on-year in net profit to Rs 18,654 crore in Q3 FY26 from Rs 16,736 crore posted in the same quarter a year back. The bank’s total income rose 33.4% YoY to Rs 90,005 crore, led by a 144% jump in treasury profit to Rs 2,228 crore.
In the third quarter of the current financial year, HDFC Bank’s NII grew over 6% to Rs 32,615 crore, and other income increased 16% to Rs 13,254 crore. Asset quality improved, with gross NPAs declining to 1.24% and net NPAs to 0.42%.