HDFC Bank Q2 Profit Rises 4.7% to Rs 19,510 Crore as Deposits Grow
HDFC Bank, India’s largest private sector lender, on Saturday reported a standalone net profit of Rs 19,510 crore for the July–September quarter of 2026-27, up 4.7% from Rs 18,641 crore in the same quarter last year. Business Standard described the result as broadly in line with estimates, while Business Today noted it was slightly below a Bloomberg consensus estimate of Rs 19,606 crore.
What the Quarterly Numbers Show
Net interest income, the difference between what the bank earns on loans and pays on deposits, rose 9.7% to Rs 34,620 crore from Rs 31,550 crore. The net interest margin stood at 3.16% on total assets and 3.32% on interest-earning assets, Business Today reported.
A sharp fall in treasury trading gains, to Rs 780 crore from Rs 2,390 crore a year earlier, held back headline growth. Excluding these gains, profit rose 12.6%. Fee and commission income increased to Rs 9,690 crore from Rs 8,840 crore, while provisions and contingencies stood at about Rs 3,570 crore.
Deposits Grow and Bad Loans Ease
Average deposits rose 16.8% from a year earlier to Rs 31,66,400 crore. Average current and savings account (CASA) deposits grew 10.7% to Rs 9,71,200 crore. The bank’s total balance sheet reached Rs 45,77,800 crore on September 30, compared with Rs 40,03,000 crore a year earlier.
Asset quality improved. The gross non-performing asset ratio fell to 1.11% from 1.17% in the June quarter and 1.24% a year earlier. Excluding the agricultural segment, it was 0.87%, according to Business Standard.
Why It Matters for Ordinary Customers
HDFC Bank serves a very large number of households, salaried workers and small businesses, so its results are closely watched as a sign of how Indians are saving and borrowing. Because CASA balances grew more slowly than total deposits, a bigger share of the bank’s funds came from fixed and term deposits, which usually pay savers higher interest.
A lower share of bad loans means more borrowers, from home-loan customers to small traders, are repaying on time. For depositors, steady asset quality at a large lender is a reassuring signal at a time when bank instruments have also been in focus after the Supreme Court’s ruling on Yes Bank’s AT-1 bonds.
The results come as several large lenders announce their September-quarter numbers. They also add to the broader picture of the economy, including recent IMF estimates of India’s per capita income, as markets look for signs of how credit demand holds up through the festive season.
Based on reporting by Business Standard and Business Today, with year-ago figures from Business Today.
Image: Business Standard / Bloomberg.
