HDFC Bank Q2 2026 Results: Net Profit Rises 5% To Rs 19,509.96 Crore YoYOct 17, 2026, 17:22 IST

HDFC Bank, India's largest private sector lender, reported an improvement in profitability, loan growth and asset quality in the September quarter of FY27, with standalone net profit rising nearly 5 per cent year-on-year. The bank also recorded healthy growth in net interest income and deposits, while its gross non-performing asset ratio declined from both the previous quarter and the year-ago period.

The results, announced on Saturday, October 17, come ahead of a leadership transition at the lender. Managing Director and Chief Executive Officer Sashidhar Jagdishan's tenure is scheduled to end on October 26, with Anup Bagchi set to succeed him.

HDFC Bank posted a standalone net profit of Rs 19,509.96 crore for Q2 FY27, up from Rs 18,641.28 crore in the corresponding quarter last year. On a quarter-on-quarter basis, profit after tax (PAT) increased 2.83 per cent from Rs 19,069.72 crore in Q1 FY27.

Net interest income (NII), which measures the difference between interest earned on loans and investments and interest paid on deposits and borrowings, grew 9.72 per cent year-on-year to Rs 34,619.18 crore. The lender had reported NII of Rs 31,551.50 crore in Q2 FY26.

Total interest earned during the September quarter stood at Rs 83,426.60 crore.

The bank's net interest margin (NIM) was 3.16 per cent on total assets and 3.32 per cent on interest-earning assets. These figures indicate the spread the lender generated from its interest-bearing business relative to its assets.

HDFC Bank Asset Quality: Gross NPA Ratio Falls To 1.11 per cent

The lender reported an improvement in its asset quality, with the gross non-performing asset (GNPA) ratio declining to 1.11 per cent of gross advances as of September 30, 2026.

The ratio had stood at 1.17 per cent at the end of the June 2026 quarter and 1.24 per cent on September 30, 2025. A lower GNPA ratio generally indicates that a smaller proportion of a bank's advances has turned into non-performing assets.

Meanwhile, the net non-performing asset (NNPA) ratio remained unchanged at 0.37 per cent, suggesting stability in the bank's net bad-loan position.

HDFC Bank reported provisions and contingencies of Rs 3,570 crore during Q2 FY27. Its total credit cost ratio for the quarter was 0.44 per cent.

HDFC Bank's gross advances rose 16.3 per cent year-on-year to Rs 32,19,500 crore as of September 30, 2026. Advances under management also recorded growth of 15.3 per cent over the same period.

Small and mid-market enterprise lending emerged as the fastest-growing segment among the specified loan categories, with advances increasing 23.5 per cent year-on-year.

Corporate and other wholesale loans expanded 16.4 per cent, while retail advances grew 11.7 per cent.

Average advances under management reached Rs 31,87,200 crore during the quarter. This represented a 14.1 per cent increase from the year-ago period and growth of 4.9 per cent compared with the preceding quarter.

HDFC Bank Deposits Rise 18.8% In September Quarter

The bank's deposit base also registered strong growth. Total deposits increased 18.8 per cent year-on-year to Rs 33,27,400 crore as of September 30, 2026.

Average deposits rose 16.8 per cent annually to Rs 31,66,400 crore, marking a 5.1 per cent increase on a sequential basis.

Current account and savings account (CASA) deposits grew 10.8 per cent compared with the year-ago period and accounted for 31.6 per cent of total deposits. Time deposits recorded faster growth of 22.8 per cent.

The deposit numbers are an important indicator of the bank's ability to mobilise funds to support lending. The difference in growth rates between CASA and time deposits also highlights the varying pace of expansion across deposit categories.

She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se... View More