HDFC Bank Ltd. reported a significant increase in net income for the quarter ended December 2025, surpassing market estimates driven by strong growth in retail and personal loans. The results underscore its expanding consumer finance footprint across India.
- Net income rose to ₹18,720 crore in Q4 FY2025, up 14.3% YoY.
- Retail loan growth reached 23.6%, with personal loans up 28.7%.
- Consumer credit now makes up 58% of new loan disbursements.
- Total loan book increased to ₹11.3 trillion.
- NPA ratio remained at 1.7%, stable over the past four quarters.
- Stock surged 5.2% following earnings release.
HDFC Bank Ltd. delivered quarterly net income of ₹18,720 crore ($2.2 billion) for the period ending December 31, 2025, marking a 14.3% year-on-year rise and exceeding analyst projections by approximately 9%. This performance was primarily fueled by a 23.6% surge in retail loan disbursements, including a notable 28.7% jump in personal loans and a 21.4% increase in auto loans. The bank’s total loan book expanded to ₹11.3 trillion during the quarter, with consumer credit accounting for 58% of new lending—up from 53% in the same period last year. HDFC Bank has aggressively expanded its digital lending platform, enabling faster approvals for products ranging from home appliances to vehicles, reinforcing its strategy of leveraging home loans as a gateway to broader consumer financing. Non-performing assets (NPAs) remained stable at 1.7% of total loans, supported by disciplined underwriting and recovery efforts. The bank also maintained a core capital adequacy ratio of 17.1%, well above regulatory requirements, reflecting prudent risk management amid macroeconomic volatility. The positive earnings report lifted HDFC Bank’s stock price by 5.2% on January 17, 2026, outperforming the broader banking index. Investors reacted favorably to the combination of revenue growth, strong asset quality, and strategic expansion in consumer credit segments, particularly in tier-2 and tier-3 urban centers.