HDFC Bank, India’s largest private sector lender, on Saturday announced its financial results for the second quarter of FY27, posting growth in net profit and net interest income alongside an improvement in asset quality.
It reported a nearly 5% year-on-year (YoY) increase in standalone net profit to ₹19,509.96 crore. The bank’s profit after tax (PAT) was ₹18,641.28 crore in the corresponding quarter of the previous financial year. On a sequential basis, net profit grew 2.83% from ₹19,069.72 crore in the June 2026 quarter.
Net interest income (NII), which represents the difference between interest earned and interest expended, increased 9.72% YoY to ₹34,619.18 crore in Q2 FY27, compared with ₹31,551.50 crore in the year-ago quarter. Total interest earned during the quarter stood at ₹83,426.60 crore.
The bank’s net interest margin (NIM) stood at 3.16% on total assets and 3.32% on interest-earning assets.
The quarter is also significant as it is expected to be the final earnings report under managing director and chief executive officer Sashidhar Jagdishan, whose tenure ends on October 26. Anup Bagchi is set to replace him.
HDFC Bank Q2 Results: Key highlights
1. Asset quality improves
HDFC Bank reported an improvement in its gross non-performing asset (GNPA) ratio, which declined to 1.11% of gross advances as of September 30, 2026. This compared with 1.17% in the preceding quarter and 1.24% in the year-ago period.
The net non-performing asset (NNPA) ratio remained stable at 0.37%, indicating that the bank’s reported net bad-loan ratio was unchanged.
2. Provisions and credit costs
The lender reported provisions and contingencies of ₹3,570 crore for Q2FY27. Its total credit cost ratio stood at 0.44% during the quarter.
3. Advances expand across lending segments
HDFC Bank’s gross advances increased 16.3% year-on-year to ₹32,19,500 crore as of September 30, 2026. Advances under management grew 15.3% over the same period.
Small and mid-market enterprise loans led growth among the specified lending categories, rising 23.5% YoY. Corporate and other wholesale loans expanded 16.4%, while retail loans grew 11.7%.
Average advances under management stood at ₹31,87,200 crore during the quarter, marking an increase of 14.1% year-on-year and 4.9% sequentially.
4. Deposits rise nearly 19%
The bank’s total deposits climbed 18.8% year-on-year to ₹33,27,400 crore as of September 30, 2026. Average deposits increased 16.8% to ₹31,66,400 crore, up 5.1% sequentially.
Current account and savings account (CASA) deposits grew 10.8% from a year earlier and accounted for 31.6% of total deposits. Time deposits registered stronger growth of 22.8% during the period.
5. Capital adequacy remains above regulatory requirements
HDFC Bank’s capital adequacy ratio under Basel III stood at 18.9% as of September 30, 2026, against 20% a year earlier and a regulatory requirement of 11.9%.
The Tier 1 capital adequacy ratio was 17.2%, while the Common Equity Tier 1 (CET1) ratio stood at 17.1%.
6. Revenue grows, but treasury trading gains decline
HDFC Bank reported net revenue of ₹48,450 crore for the September quarter, compared with ₹45,900 crore in the corresponding period last year.
Other income amounted to ₹13,830 crore, including ₹9,690 crore from fees and commissions. Treasury trading gains, however, declined to ₹780 crore from ₹2,390 crore in Q2FY26.
Operating expenses increased to ₹18,970 crore from ₹17,980 crore a year earlier. The cost-to-income ratio stood at 39.1%.
HDFC Bank share price trend
HDFC Bank shares closed 0.28% higher at ₹728.85 on Friday, ahead of the Q2FY27 earnings announcement. Meanwhile, it has lost 10% in 3 months, 8.5% in 6 months and 27% in the last 1 year.
Despite the marginal rise in the latest session, the stock has declined 26.5% so far in 2026, compared with an 11.5% fall in the Nifty 50 over the same period.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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