HDFC Bank Q2 Results FY27: Net Profit Rises 4.7% to ₹19,510 Crore, NPA Ratio Improves to 1.11%
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HDFC Bank reported a 4.7% year-on-year increase in standalone net profit to ₹19,510 crore for the second quarter of the financial year 2026-27 (Q2 FY27), announced on Saturday. The bank’s performance broadly met market expectations, supported by growth in net interest income, advances and deposits. The private sector lender also reported an improvement in asset quality compared with both the previous quarter and the same period last year.
The bank’s net interest income (NII), which represents the difference between interest earned and interest paid, increased 9.7% year-on-year to ₹34,619.2 crore. A CNBC-TV18 poll had estimated net profit of ₹19,567 crore, representing growth of 5%, and net interest income of ₹34,861 crore, up 10%. Both figures reported by the bank were within 1% of the market estimates.
HDFC Bank’s net interest margin (NIM) stood at 3.16% of total assets during the July-September quarter, compared with 3.26% in the previous quarter. The NIM calculated on interest-earning assets was 3.32% during the quarter. The figures indicate that the bank’s interest margin moderated on a sequential basis.
The bank’s provisions and contingencies increased 18.7% quarter-on-quarter to ₹3,574 crore from ₹3,010 crore in the June 2026 quarter. On a year-on-year basis, provisions rose 2.1% from ₹3,501 crore in the corresponding quarter of the previous financial year. The total credit cost ratio stood at 0.44%.
HDFC Bank reported an improvement in its asset quality during the September quarter. The gross non-performing asset (GNPA) ratio declined to 1.11% as of September 30, 2026, compared with 1.17% at the end of the June quarter and 1.24% a year earlier. Excluding non-performing assets from the agricultural segment, the GNPA ratio stood at 0.87%, down from 0.91% in June 2026 and 0.99% in September 2025.
The bank’s gross non-performing assets stood at ₹35,810 crore at the end of September, slightly lower than ₹35,846 crore in the previous quarter. Net non-performing assets declined 4.1% sequentially to ₹11,851 crore from ₹12,357 crore. The net NPA ratio stood at 0.37% at the end of the September quarter.
The bank continued to report growth in its loan portfolio. Gross advances increased 16.3% year-on-year to ₹32,19,500 crore as of September 30, 2026, while advances under management grew 15.3%. Retail loans increased 11.7%, loans to small and mid-market enterprises grew 23.5%, and corporate and other wholesale loans rose 16.4%.
Average advances under management stood at ₹31,87,200 crore during the quarter, registering growth of 14.1% year-on-year and 4.9% compared with the previous quarter. The growth indicates continued expansion across the bank’s retail, business and corporate lending segments.
HDFC Bank’s total deposits increased 18.8% year-on-year to ₹33,27,400 crore at the end of September 2026. Average deposits rose 16.8% to ₹31,66,400 crore, registering sequential growth of 5.1%. Current account and savings account (CASA) deposits grew 10.8% year-on-year and accounted for 31.6% of total deposits. Time deposits increased 22.8% during the same period.
The bank’s capital position remained above the regulatory requirement. Its capital adequacy ratio under Basel III stood at 18.9% as of September 30, 2026, compared with 20% a year earlier. The applicable regulatory requirement was 11.9%. The Tier 1 capital adequacy ratio stood at 17.2%, while the Common Equity Tier 1 (CET1) ratio was 17.1%.
The bank reported net revenue of ₹48,450 crore for the September quarter, compared with ₹45,900 crore in the same period last year. Other income stood at ₹13,830 crore, including ₹9,690 crore from fees and commissions. Treasury trading gains declined significantly to ₹780 crore from ₹2,390 crore in the corresponding quarter of the previous year.
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 also reported that its net profit, excluding treasury trading gains, grew by approximately 12.6% year-on-year, indicating stronger underlying earnings growth after excluding these gains.
In the stock market, HDFC Bank shares closed 0.28% higher at ₹728.85 on Friday, ahead of the announcement of the quarterly results. However, the stock has declined 26.5% so far in 2026, compared with an 11.5% fall in the Nifty 50 index over the same period. The bank’s market capitalisation stood at approximately ₹11.24 lakh crore.
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