HDFC Bank on Saturday reported an 8.04 per cent year-on-year rise in consolidated net profit to ₹20,350.76 crore for Q4FY26, aided by higher interest income and a decline in provisions.

The lender had posted a consolidated net profit of ₹18,834.88 crore in the corresponding quarter last year.

For the full financial year of FY26, consolidated profit stood at ₹76,025.97 crore, marking a 7.4 per cent increase over ₹70,792.25 crore in FY25. On a standalone basis, net profit rose 9 per cent to ₹19,221 crore in Q4FY26 compared with ₹17,616 crore a year earlier. Net interest income grew 3.2 per cent to ₹33,080 crore from ₹32,070 crore in the year-ago quarter. Provisions declined 18.27 per cent year-on-year to ₹2,609.57 crore, supporting bottom-line growth.

Asset quality improved, with the gross non-performing assets (GNPA) ratio easing to 1.15 per cent from 1.33 per cent a year ago.

MD and CEO Sashidhar Jagdishan told analysts that the bank outpaced system credit growth estimates of 10.5–11.5 per cent, clocking 12 per cent growth, while deposits expanded 14.4 per cent, continuing to outpace advances. He emphasised that the lender remains focused on profitability while pursuing growth opportunities, adding that the loan-deposit ratio is not a constraint.

Deputy MD Kaizad M Bharucha said that credit growth momentum could sustain in FY27, but has to be tempered amid geopolitical uncertainties. The bank said an independent legal review into the exit of former part-time chairman Atanu Chakraborty is underway.

The board recommended a final dividend of ₹13 per share, taking the FY26 total to ₹15.5 per share, and approved fundraising of up to ₹60,000 crore via debt instruments.