HDFC Bank ADR jumps as Q4 profit beats with lower provisions, asset quality improves
HDFC Bank’s ADR (HDB) is rising after the bank reported Q4 FY26 profit of ₹19,221 crore, up 9% year over year, with net interest income up 3.2%. The results also showed improving asset quality (GNPA 1.15%, NNPA 0.38%) and a FY26 dividend of ₹15.50 per share (including a ₹13 final dividend).
1. What’s moving the stock
HDFC Bank’s U.S.-listed ADRs (HDB) are higher today as investors react to the bank’s latest quarterly earnings, released April 18, 2026. The bank reported Q4 FY26 net profit of ₹19,221 crore (+9% YoY), with net interest income up 3.2% to about ₹33,080–₹33,082 crore, helping offset lingering concerns from earlier governance headlines. (business-standard.com)
2. Key drivers: provisions down, asset quality better
A notable support for the quarter was lower provisions: ₹2,609 crore versus ₹3,193 crore a year earlier, an ~18% decline. Asset quality also improved sequentially, with gross NPA at 1.15% (vs. 1.24% in Q3 FY26) and net NPA at 0.38% (vs. 0.42% in Q3 FY26), reinforcing the view that credit costs remain contained. (economictimes.indiatimes.com)
3. Dividend and what investors watch next
The board recommended a ₹13 final dividend for FY26 and indicated total FY26 dividend of ₹15.50 per share, with a record date set for June 19, 2026 (subject to shareholder approval). Next catalysts for ADR direction include management commentary on deposit momentum versus loan growth, margin trajectory, and whether the bank can sustain improving credit trends while rebuilding investor confidence after recent governance-related volatility. (economictimes.indiatimes.com)