v3.26.1
Income taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Tax Expense
Income tax expense is comprised of the following:
 
    
Fiscal year ended March 31,
  
    
2024
     
2025
     
2026
     
2026
  
    
(In millions)
  
Current tax expense
    Rs.   140,308.9      Rs.  199,251.5      Rs.  246,142.4      US$ 2,623.3  
Deferred tax expense/ (benefit)
      (57,133.2 )       (15,613.6 )       (24,426.2 )
 
      (260.3 )
Interest on income tax refund
      (5,348.6 )       (8,623.0 )       (9,784.7 )      (104.3 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Income tax expense
    Rs.   77,827.1      Rs.  175,014.9      Rs.  211,931.5      US$  2,258.7
  
  
 
 
     
 
 
     
 
 
     
 
 
  
Reconciliation of Income Taxes at Indian Statutory Income Tax Rate to Income Tax Expense as Reported
A reconciliation of taxes at the Indian statutory income tax rate, the income tax rate of the Bank’s country of domicile, to income tax expense as reported is as follows:
 
   
Fiscal year ended March 31,
  
   
2024
    
2025
    
2026
    
2026
  
               
(In millions)
                          
Income before income tax expense
 
Rs.
 
705,459.0
 
 
 
Rs.
 
861,546.2
 
 
 
Rs.
 
939,027.9
 
 
US$
 
10,007.6
 
 
Expected i
ncome tax e
xpense
 
 
177,549.9
 
 
 
25.17
% 
 
 
216,833.8
 
 
 
25.17
% 
 
 
236,334.5
 
 
 
2,518.8
 
 
 
25.17
% 
Adjustments to reconcile expected income tax to actual tax expense
 
 
 
 
 
 
 
Foreign tax effects
 
 
(77.3
) 
 
 
(0.01
)% 
 
 
(51.2
) 
 
 
(0.01
)% 
 
 
(639.2
) 
 
 
(6.8
) 
 
 
(0.07
)% 
Cross border tax laws
 
 
104.1
 
 
 
0.01
% 
 
 
165.3
 
 
 
0.02
% 
 
 
1,676.9
 
 
 
17.9
 
 
 
0.18
% 
Tax credit
 
 
(26.8
) 
 
 
0.00
% 
 
 
(114.1
) 
 
 
(0.01
)% 
 
 
(1,037.7
) 
 
 
(11.1
) 
 
 
(0.11
)% 
Interest on income tax refund, net of income tax effect
 
 
(4,125.0
) 
 
 
(0.58
)% 
 
 
(6,452.8
) 
 
 
(0.75
)% 
 
 
(7,322.5
) 
 
 
(78.0
) 
 
 
(0.78
)% 
Deficiencies/ (excess deductions) on Stock-based compensation
 
 
(10,645.6
) 
 
 
(1.51
)% 
 
 
1,427.1
 
 
 
0.17
% 
 
 
(1,931.5
) 
 
 
(20.6
) 
 
 
(0.21
)% 
Income subject to rates other than the statutory income tax rate
 
 
(1,262.0
) 
 
 
(0.18
)% 
 
 
(910.8
) 
 
 
(0.11
)% 
 
 
(4,503.5
) 
 
 
(48.0
) 
 
 
(0.48
)% 
Changes in tax laws or rates enacted in the current period
 
 
—
 
 
 
 
0.00
% 
 
 
(11,503.2
) 
 
 
(1.34
)% 
 
 
— 
 
 
 
— 
 
 
 
0.00
% 
Special reserve deduction
 
 
(5,143.2
) 
 
 
(0.73
)% 
 
 
(8,053.7
) 
 
 
(0.93
)% 
 
 
(7,550.4
) 
 
 
(80.5
) 
 
 
(0.80
)% 
Changes in unrecognized tax benefits of earlier years
 
 
(80,874.4
) 
 
 
(11.46
)% 
 
 
(16,515.6
) 
 
 
(1.92
)% 
 
 
(726.1
) 
 
 
(7.7
) 
 
 
(0.08
)% 
Other, net
 
 
2,327.4
 
 
 
0.32
% 
 
 
190.1
 
 
 
0.02
% 
 
 
(2,369.0
)
 
 
(25.3
)
 
 
(0.25
)% 
 
 
 
      
 
 
      
 
 
    
 
 
    
Income tax expense
 
Rs.
77,827.1
 
 
 
11.03
% 
 
Rs.
175,014.9
 
 
 
20.31
% 
 
Rs.
211,931.5
 
 
US$
2,258.7
 
 
 
22.57
% 
 
 
 
      
 
 
      
 
 
    
 
 
    
Tax Effects of Significant Temporary Differences
The tax effects of significant temporary differences are as follows:
 
    
As of March 31,
  
    
2025
     
2026
     
2026
  
    
(In millions)
  
Tax effect of:
  
  
  
Deductible temporary differences:
  
  
  
Allowance for credit losses
  
Rs.
 
69,769.8
 
  
 
Rs.
74,369.3
 
  
US$
792.6
 
Investments
  
 
235.4
 
  
 
31,891.6
 
  
 
339.9
 
Lease liabilities
  
 
37,099.8
 
  
 
41,612.1
 
  
 
443.5
 
Undistributed policyholders earnings account
  
 
32,960.6
 
  
 
40,288.6
 
  
 
429.4
 
Accrued expenses and other liabilities - Employee benefits
  
 
4,062.2
 
  
 
5,278.9
 
  
 
56.3
 
Borrowings
  
 
10,468.3
 
  
 
3,292.5
 
  
 
35.1
 
Stock-based compensation
  
 
19,009.0
 
  
 
17,824.2
 
  
 
190.0
 
Others
(*)
  
 
734.9
 
  
 
17,767.9
 
  
 
189.2
 
  
 
 
     
 
 
     
 
 
  
Deferred tax asset
  
 
174,340.0
 
  
 
232,325.1
 
  
 
2,476.0
 
  
 
 
     
 
 
     
 
 
  
Taxable temporary differences:
  
  
  
ROU asset
  
 
37,087.5
 
  
 
41,563.7
 
  
 
443.0
 
Property and equipment
  
 
5,795.7
 
  
 
6,083.3
 
  
 
64.8
 
Loans
  
 
9,992.1
 
  
 
10,553.1
 
  
 
112.5
 
Intangible assets
  
 
306,920.5
 
  
 
301,714.5
 
  
 
3,215.5
 
Investments
  
 
92,614.8
 
  
 
32,347.7
 
  
 
344.7
 
Liabilities on policies in force
  
 
26,315.8
 
  
 
67,929.9
 
  
 
724.0
 
Others
(**)
  
 
9,438.9
 
  
 
4,023.7
 
  
 
42.9
 
  
 
 
     
 
 
     
 
 
  
Deferred tax liability
  
 
488,165.3
 
  
 
464,215.9
 
  
 
4,947.4
 
  
 
 
     
 
 
     
 
 
  
Net deferred tax asset/ (liability)
  
Rs.
 
(313,825.3
)
 
  
Rs.
 
(231,890.8
)
 
  
US$
 
(2,471.4
)
 
  
 
 
     
 
 
     
 
 
  
 
(*)
Others in current year include deferred taxes on outside basis differences related to investments in affiliates amounting to
R
s
16,453.9 million
(**)
On the sale of the Bank’s stake in HDBFSL, the deferred tax liability amounting to Rs. 3,375 million recognized in the previous year has been reversed in the fiscal 2026.
Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows:
 
    
Fiscal year ended March 31,
  
    
2024
     
2025
     
2026
     
2026
  
    
(In millions)
  
Opening balance
    Rs. 48,792.1      Rs.  22,042.3      Rs. 6,717.3  
US$  71.5  
Increase related to acquisition of eHDFC
      52,980.5        —         —         —   
Decrease related to prior year tax positions
      (80,874.4 )       (16,515.6 )      (726.1 )
 
     (7.7 )
 
Increase related to current year tax positions
      1,144.1        1,190.6        212.5        2.3  
  
 
 
     
 
 
     
 
 
     
 
 
  
Closing balance
    Rs.  22,042.3      Rs. 6,717.3      Rs. 6,203.7      US$ 66.1