HDFC Bank Reports 22% QoQ Loan Growth Amid Strong Retail Lending Push

HDFC Bank has accelerated its recovery in lending activity, posting a 22% quarter-on-quarter expansion in total advances, with retail and personal loan segments leading the momentum. The bank's total loan book reached ₹14.8 trillion in the December 2025 quarter, up from ₹12.1 trillion in the prior quarter, reflecting strong capital deployment and improved credit appetite across customer segments. The retail loan portfolio grew by 28% QoQ, largely fueled by a 35% surge in personal loans and a 20% rise in home loans. This growth underscores shifting consumer confidence and increased demand for financing despite elevated interest rate levels. Corporate lending expanded by 14% QoQ, contributing to the overall lending rebound, although at a slower pace compared to retail. Asset quality remains stable, with the gross non-performing asset ratio holding steady at 2.1%—a level consistent with the previous quarter. The bank's provisioning coverage ratio stood at 72%, providing a buffer against potential credit risks. These metrics suggest that HDFC Bank is balancing aggressive lending expansion with prudent risk management. The strong loan growth has translated into improved earnings performance, with net profit rising 18% year-on-year. The results have bolstered investor confidence, contributing to a 5.4% increase in the bank's share price over the week following the release. The performance strengthens HDFC Bank’s position as India’s largest private sector lender in terms of loan book size and profitability.