HDFC Bank — India’s largest private sector lender — released its Q3 FY26 business updates on 5th January, 2026. The business updated showed continued growth in loans and deposits, but the pace of deposit showed slower traction.
HDFC Bank – Quarterly Business Comparison :
| Metric | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q3 FY25 |
| Gross Advances Growth | 13.0% | 12.4% | 11.9% | 16.0% |
| Advances Under Management (AUM) | 11.0% | 10.2% | 9.8% | 17.2% |
| Average Deposit Growth | 14.5% | 13.6% | 12.2% | 19.8% |
| CASA Deposit Growth | 11.5% | 10.8% | 9.9% | 16.5% |
| Term Deposit Growth | 16.8% | 15.2% | 13.4% | 21.0% |
| Total Deposits (Period End) | 14.0% | 12.9% | 11.5% | 20.1% |
What the Quarterly Trend Indicates
The above quarterly comparison highlights a clear trend of growth normalisation in FY26 compared to the strong base of Q3 FY25. While both loan and deposit growth have moderated sequentially, the pace remains healthy and sustainable, reflecting the disciplined balance-sheet management by HDFC Bank. Credit growth continues to stay close to 12% in FY 26, indicating steady demand across retail and corporate sectors. At the same time, deposit growth has softened slightly in Q3 FY 26, with term deposits growing faster than CASA, suggesting a more competitive funding environment which can mount the pressure on funding costs. Overall, the data suggests that the bank is prioritising stability, funding balance, and long-term profitability over aggressive expansion, which is structurally positive for long-term investors.
⚠️ Disclaimer:
The above figures are based on publicly available business updates disclosures and rounded growth rates. These are indicative in nature and meant for educational purposes only. This is not an investment advice.
