The HDFFC Bank also announced a final dividend of ₹13 per share. Management highlighted stable deposit flows and ongoing governance developments. | Photo Credit: Dado Ruvic

HDFC Bank reported a 9 per cent year-on-year (yoy) increase in standalone net profit at ₹19,221 crore in the fourth quarter (Q4FY26) against ₹17,616 crore in the year-ago period on the back of a decent growth in other income and a decline in loan loss provisions amid improvement in asset quality.

For the full year, net profit of India’s largest private sector bank rose 10.9 per cent yoy to ₹74,670 crore in FY26 against ₹67,347 crore in FY25. The profitability in the current quarter is within the 6-11 per cent growth range estimated by broking firms.

The Bank’s Board of Directors recommended a final dividend of ₹13 per equity share of ₹1. With this, the total dividend for the year ended March 31, 2026, would be ₹15.50.

Management addresses recent developments

Making a rare appearance (in the backdrop of the abrupt resignation of Part Time Chairman Atanu Chakraborty last month) in a media call to announce the Bank’s financial results, Sashidhar Jagdishan, MD & CEO, said: “In fact, all of you know that we witnessed a very unprecedented event in March. But its (the Bank’s) strength and resilience were seen with stable and strong deposit flows.”

He emphasised that the unequivocal statements issued by the Government of India, the Reserve Bank of India, and SEBI also helped the Bank.

Referring to the appointment of external law firms (two domestic -- Trilegal and Wadia Ghandy & Co, and one international), to conduct a review regarding Chakraborty’s resignation letter, Sashidhar said the legal review is in progress and as and when a report is brought out, the Bank will come into the open, providing a summary of the same.

Leadership and governance updates

On the appointment of a new Part-Time Chairman, Jagdishan emphasised that both he and Kaizad Bharucha, Deputy Managing Director, are rooting for Keki Mistry, currently interim Chairman of HDFC Bank. But obviously, the nomination and remuneration committee (NRC) and the Board will take a collective decision. So, it could be Mistry or anyone else.

On the re-appointment of Sashidhar, whose term as MD & CEO ends on October 26, 2026, for a third term, Bharucha said the NRC and the Board are completely seized of the matter, and this will be taken up in due course.

Regulatory and legal matters

Referring to the alleged mis-selling of AT-I bonds to NRIs in Dubai and a complaint lodged with the National Consumer Disputes Redressal Commission (NCDRC), Sashidhar noted that, as per the Commission’s observation, India is not the jurisdiction for the complaint, and it has to move to the overseas jurisdiction where the event happened.

The Bank’s chief pointed out that, as per a couple of points mentioned in the NCDRC order, the complainants were not retail or uninformed investors. They had a clear intent to pursue high-yield, high-risk investment products, he added.

Operational performance in Q4

In the reporting quarter, the Bank reported a 3 per cent yoy increase in net interest income at ₹33,082 crore (₹R32,066 crore in Q4FY25).

Other income rose about 10 per cent yoy to ₹13,199 crore (₹12,028 crore). Loan loss provisions were down 21 per cent yoy at ₹2,610 crore (₹3,193 crore).

Asset quality improved, with the gross non-performing assets (GNPAs) ratio improving to 1.15 per cent of gross advances as at March-end 2026, from 1.33 per cent as at March-end 2025. Net NPA position too improved to 0.38 per cent of net advances from 0.43 per cent.

Published on April 18, 2026