Mumbai: HDFC Bank reported 11.46% year-on-year rise in net profit to Rs 18,653.75 crore in Q3FY26 from Rs 16,735.50 crore a year ago, led by treasury profits supported by loan growth and stable asset quality, even as operating costs rose sharply.On a sequential basis, profit was largely flat, up 0.07% from Rs 18,641.28 crore in the September quarter. Asset quality remained strong. Gross non-performing assets improved to 1.24% from 1.42% a year ago, while net NPAs declined to 0.42% from 0.46%. Net interest margin was stable at 3.35% compared to 3.27% in the previous quarter.The balance sheet crossed the Rs 40 lakh crore mark during the quarter, while total assets increased to Rs 40,88,987 crore. Total advances grew 12.04% year-on-year to Rs 28,21,446 crore, while deposits grew 11.56% to Rs 28,60,055 crore. CASA ratio stood at 33.6%. The credit-to-deposit ratio remained high at around 98.6%, reflecting continued strong credit deployment relative to deposit growth.Total income rose 33.42% to Rs 90,005 crore compared to a year ago. Net interest income stood at Rs 32,615 crore, up 6.4% year-on-year, while other income rose 15.72% to Rs 13,253.84 crore, driven by treasury performance.Treasury profit rose 144% to Rs 2,227.60 crore from Rs 924.51 crore a year ago. Miscellaneous income including recovery from written off accounts and banking charges also contributed to the increase in non-interest income.Operating expenses increased 63% year-on-year to Rs 18,771.04 crore, reflecting higher employee costs of Rs 7,203.17 crore and the impact of an estimated Rs 800 crore from the implementation of the new labor code. Despite this, the cost-to-income ratio based on total income remained around 20.8%. Provisions and contingencies declined 10.02% to Rs 2,837.86 crore compared to a year ago.