HDFC Bank has reported Q3 FY26 earnings with deposit growth driven by its expanding and maturing branch network, supported by increased cross-selling of mortgages and credit cards.
As one of India's major private lenders, the bank is strengthening customer relationships across its 9,616 branches.
As of Q3 FY26, HDFC Bank operates 9,616 branches, accounting for over 6% of India’s total branch footprint. Average deposits per branch stand at ₹305 crore, which management considers highly efficient.
Branch expansion peaked at 1,500 additions in FY23 and reduced to 1,000 in FY24, with 500 new branches added in the first 9 months of FY26. The bank highlighted that branch productivity improves significantly after the 5-year maturity mark, contributing to stronger deposit balances.
HDFC Bank leverages home loans and credit cards to enhance customer engagement. Mortgages are positioned as relationship anchors rather than stand-alone loans, with 99% of mortgage clients opening savings accounts.
Similarly, credit cards have aided balance growth, with over 25 million cards and a 29% market share in spending. For every ₹100 in credit card balance, the bank holds over ₹550 in deposits, correlating product holding with deposit mobilisation.
Read More: Mirae Asset Mutual Fund’s December Portfolio: ITC and HDFC Bank Lead Top 10 Picks!
Deposits rose 12% YoY, with average balances reaching ₹27.5 trillion and quarter-end deposits at ₹28.6 trillion. The bank’s CASA ratio remained stable at 34%, with 2.4% growth in CASA balances QoQ.
Despite subdued retail loan growth of 6.9% YoY, disbursals in mortgage and non-mortgage retail segments improved.
Gross advances touched ₹28.4 trillion, marking an 11.9% YoY rise. Net interest income grew 6.4% YoY to ₹32,600 crore, with net interest margin at 3.35% due to deposit repricing lag.
HDFC Bank’s credit-deposit ratio stood near 98% at the end of December. The bank is not focusing on rapid correction but prefers gradual moderation.
It continues to avoid high-cost wholesale deposits, maintaining a preference for granular, branch-led funding sources. The customer base crossed 10 crore, with 1.5 million new liability customers added during the quarter.
As of January 21, 2026, at 9:34 AM, HDFC Bank share price on NSE was trading at ₹930.60 down by 0.06% from the previous closing price.
HDFC Bank’s Q3 FY26 results reflect a consistent focus on deposit growth through maturing branches and effective cross-selling. The branch network’s growing productivity and deeper customer engagement have led to stable deposit metrics and improved overall performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 21, 2026, 12:16 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
