Noida, Oct 17 (APAC Media): HDFC Bank, India’s largest private sector lender, on Saturday reported a 4.6 per cent year-on-year increase in standalone net profit to Rs 19,510 crore for the second quarter of the financial year 2026-27 (FY27), compared with Rs 18,641 crore in the corresponding quarter of the previous financial year.
According to the bank’s regulatory filing with the BSE, net interest income (NII), the difference between interest earned and interest expended, rose 9.7 per cent year-on-year to Rs 34,620 crore during the July-September quarter, supported by strong growth in advances.
The bank’s gross advances expanded 16.3 per cent year-on-year, reflecting continued growth across its retail, business banking and corporate lending segments.
However, other income declined 3.6 per cent year-on-year to Rs 13,830 crore, primarily due to a sharp fall in treasury trading gains. On a sequential basis, other income increased by nearly 8 per cent.
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Fees and commissions, the largest component of other income, rose to Rs 9,690 crore during the quarter from Rs 8,840 crore a year earlier.
Income from foreign exchange and derivatives declined marginally to Rs 1,550 crore from Rs 1,590 crore, while treasury trading gains fell sharply to Rs 780 crore against Rs 2,390 crore in the year-ago period.
Miscellaneous income, including recoveries and dividends, increased to Rs 1,810 crore from Rs 1,530 crore in the corresponding quarter last year.
The bank’s net interest margin (NIM) stood at 3.16 per cent of total assets and 3.32 per cent of interest-earning assets during the September quarter.
Operating expenses increased to Rs 18,970 crore from Rs 17,980 crore in the same period last year. The cost-to-income ratio stood at 39.1 per cent.
Provisions and contingencies for the quarter amounted to Rs 3,570 crore, while the overall credit cost ratio was 0.44 per cent.
Advances Grow 16.3%, Deposits Rise 18.8%
HDFC Bank’s gross advances increased 16.3 per cent year-on-year to Rs 32.2 trillion as of September 30, 2026.
Average advances under management, adjusted for transfers through inter-bank participation certificates, bills rediscounted and securitisation or assignment, grew 14.1 per cent annually to Rs 31.87 trillion. On a sequential basis, the figure rose 4.9 per cent.
Retail loans recorded year-on-year growth of 11.7 per cent, while lending to small and mid-market enterprises expanded 23.5 per cent. Corporate and other wholesale loans registered growth of 16.4 per cent. Overseas advances accounted for 3.3 per cent of the bank’s total advances.
The lender’s total deposits rose 18.8 per cent year-on-year to Rs 33.27 trillion at the end of September 2026, reflecting continued growth in its deposit base.
Time deposits increased 22.8 per cent to Rs 22.76 trillion, while current account and savings account (CASA) deposits grew 10.8 per cent.
Savings account deposits stood at Rs 7.16 trillion, while current account deposits amounted to Rs 3.36 trillion. CASA deposits accounted for 31.6 per cent of total deposits at the end of the quarter.
The bank’s total balance sheet size expanded to Rs 45.78 trillion as of September 30, 2026, compared with Rs 40.03 trillion a year earlier.
Asset Quality Improves
HDFC Bank reported an improvement in asset quality during the September quarter, with its gross non-performing assets (GNPA) ratio declining to 1.11 per cent of gross advances from 1.17 per cent in the preceding June quarter and 1.24 per cent in the corresponding period last year.
Excluding non-performing assets in the agricultural segment, the GNPA ratio stood at 0.87 per cent, compared with 0.91 per cent in the previous quarter and 0.99 per cent a year earlier.
The bank’s net non-performing assets (NNPA) ratio stood at 0.37 per cent of net advances as of September 30, 2026.
The decline in both gross and agriculture-adjusted bad loan ratios indicates an improvement in the bank’s reported asset quality during the quarter.
Consolidated Net Profit at Rs 20,700 Crore
On a consolidated basis, HDFC Bank reported net revenue of Rs 78,690 crore and net profit of Rs 20,700 crore for the second quarter of FY27.
Consolidated net profit for the first half of the current financial year stood at Rs 39,940 crore.
The September-quarter results reflect growth in the bank’s core interest income and advances, alongside improved asset quality.
However, lower treasury trading gains and higher operating expenses remained key factors affecting its overall income and expenditure profile.
-ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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