HDFC Bank Reports 4.7% Rise in Q2 Net Profit to ₹19,510 Crore

HDFC Bank Limited on Saturday reported a 4.7 per cent year-on-year increase in standalone net profit to ₹19,510 crore for the quarter ended September 30, 2026, compared with ₹18,635 crore in the corresponding quarter last year.

The bank’s net interest income (NII), representing interest earned less interest expended, rose 9.7 per cent to ₹34,620 crore from ₹31,550 crore in the year-ago quarter. Net revenue increased to ₹48,450 crore from ₹45,900 crore, according to the financial results approved by the bank’s Board of Directors at a meeting in Mumbai.

Profit before tax stood at ₹25,910 crore for the quarter, while provisions and contingencies amounted to ₹3,570 crore. The bank reported a net interest margin of 3.16 per cent on total assets and 3.32 per cent on interest-earning assets. Its cost-to-income ratio stood at 39.1 per cent.

The bank said profit after tax, excluding treasury trading gains, grew by approximately 12.6 per cent year-on-year. Treasury trading gains fell to ₹780 crore during the quarter from ₹2,390 crore in the corresponding period last year, while fees and commissions increased to ₹9,690 crore from ₹8,840 crore.

HDFC Bank’s total balance sheet size expanded to ₹45.78 lakh crore as of September 30, 2026, compared with ₹40.03 lakh crore a year earlier. Total deposits stood at ₹33.27 lakh crore, registering year-on-year growth of 18.8 per cent. Average deposits during the quarter increased 16.8 per cent to ₹31.66 lakh crore.

Average current account and savings account (CASA) deposits rose 10.7 per cent to ₹9.71 lakh crore. However, CASA deposits accounted for 31.6 per cent of total deposits at the end of September, reflecting the bank’s deposit mix alongside an increase in time deposits, which grew 22.8 per cent year-on-year to ₹22.76 lakh crore.

Gross advances reached ₹32.20 lakh crore, up 16.3 per cent from the corresponding period last year. Average advances under management increased 14.1 per cent year-on-year to ₹31.87 lakh crore.

Among lending segments, retail loans grew 11.7 per cent, loans to small and mid-market enterprises increased 23.5 per cent, and corporate and other wholesale advances rose 16.4 per cent. Overseas advances accounted for 3.3 per cent of total advances.

The bank’s asset quality indicators improved on a year-on-year basis. Gross non-performing assets stood at 1.11 per cent of gross advances at the end of September, compared with 1.24 per cent a year earlier and 1.17 per cent at the end of June 2026. Excluding non-performing assets in the agricultural segment, the gross NPA ratio was 0.87 per cent. Net non-performing assets stood at 0.37 per cent of net advances.

HDFC Bank’s total capital adequacy ratio under Basel III guidelines stood at 18.9 per cent as of September 30, 2026, against the regulatory requirement of 11.9 per cent. Tier-I capital adequacy was 17.2 per cent, while the Common Equity Tier-I ratio stood at 17.1 per cent.

For the half-year ended September 30, 2026, the bank reported standalone profit after tax of ₹38,570 crore, an increase of 4.8 per cent over the corresponding period last year. Net revenue for the six-month period stood at ₹94,810 crore, compared with ₹99,070 crore a year earlier.

The bank’s distribution network comprised 9,706 branches and 20,881 ATMs across 4,177 cities and towns as of September 30. Half of its branches were located in semi-urban and rural areas. The bank reported 2,10,109 employees at the end of the quarter, compared with 2,20,339 a year earlier.

On a consolidated basis, HDFC Bank reported quarterly net revenue of ₹78,690 crore and profit after tax of ₹20,700 crore. Consolidated profit after tax for the half-year stood at ₹39,940 crore.

Among its subsidiaries, HDB Financial Services reported quarterly profit after tax of ₹780 crore, up 34.2 per cent year-on-year, while HDFC Life Insurance reported a 13.6 per cent increase in quarterly profit to ₹510 crore. HDFC ERGO General Insurance reported quarterly profit of ₹160 crore, compared with ₹180 crore a year earlier. HDFC Securities reported profit after tax of ₹270 crore, an increase of 26.1 per cent.

The financial results were subjected to a limited review by the bank’s statutory auditors. [KNT]

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