Lenders have reported strong growth in bottom-line numbers in Q3FY26 on the back of an improving momentum in bank credit following the GST rate cut and supported by the Reserve Bank of India releasing about ₹2.5 lakh crore in liquidity through a 100 basis point rate cut in Cash Reserve Ratio.

HDFC Bank on Saturday said its consolidated profit jumped 12.17 per cent to ₹19,807 crore in Q3FY26 from ₹17,657 crore in Q3FY25. Net interest income grew 6.4 per cent to ₹32,600 crore, while net interest margin at the overall level stood at 3.35 per cent.

The bank told analysts at the Q3 earnings call on Saturday evening that the credit growth build-up has been “extremely encouraging” and the CRR release has enabled credit deployment ahead of its expectations. The bank’s gross advances have grown 11.9 per cent during the quarter.

YES Bank profit jumps

Private sector lender YES Bank on Saturday reported a 55 per cent jump in profit to ₹952 crore in Q3FY26 from ₹612 crore in Q3FY25.

The bank’s net interest income grew 10.9 per cent to ₹2,466 crore while net interest margin was at 2.6 per cent during the quarter. The bank’s advances were up 5.2 per cent year on year.

YES Bank MD and CEO Prashant Kumar said the bank is “cautious” on new loans, due to which the loan growth is lower than the banking system’s double-digit performance.

There is a pricing battle on the corporate loans front, while the home and auto loans are not profitable given the high cost of funding for the bank, Kumar said, according to PTI.

Uco net up 15%

State-owned Uco Bank on Saturday reported a 15.65 per cent rise in net profit to ₹739 crore in Q3FY26 from ₹639 crore in Q3FY25.

Net interest income for the quarter rose to ₹2,646 crore, registering a growth of 11.27 per cent against ₹2,378 crore in Q3FY25. The bank’s advances grew by 16.74 per cent in Q3FY26.

MD and CEO Ashwani Kumar said that the lender is on track with its credit guidance of 12-14 per cent for FY26.

Uco Bank, where the government holds 90.95 per cent stake, is also awaiting clarity on whether further equity dilution is expected through offer for sale or QIP.

The government has extended until August 2026 as the deadline to meet the minimum public shareholding norms.

In Q3FY26, IBDI Bank’s advances recorded growth of 15 per cent year on year, while RBL Bank’s advances grew 14 per cent year on year.