Largest private sector lender HDFC Bank on Saturday reported an 11 per cent year-on-year (yoy) rise in net profit for the quarter ended September at ₹18,640 crore, led by stable net interest income (NII) and other income growth.
NII grew 5 per cent YoY to ₹31,550 crore, while other revenue rose 25 per cent YoY to ₹14,350 crore.Operating expenses rose 6 per cent year-on-year to ₹17,980 crore, while provisions rose 30 per cent to ₹3,500 crore.
“The triad of tax breaks, VAT cuts and interest rate cuts seems to be working at the base level as we see economic activity visibly improving across customer and product segments. Against this backdrop, we have an opportunity to accelerate credit growth and that is what we have started doing from this quarter onwards. We believe this will continue and continue and we have to wait and see,” said Sashidhar Jagdishan, MD & CEO of HDFC Bank.
HDFC Bank’s loan book grew 9 per cent YoY to ₹28.68 lakh crore, while deposits rose 12 per cent YoY to ₹28.01 lakh crore.Jagdishan said the bank has slowed credit growth in FY25 to reduce credit deposit ratio to 96.5 percent from 110 percent after the merger of erstwhile HDFC with the bank.
The bank expects to achieve credit growth in line with the banking sector in FY26, and faster than the system expects in FY27. Deposit growth will remain higher than the sector average.
The MD said HDFC Bank’s net interest margin (NIM) will continue to have a tailwind in the coming quarters to a year as the asset side of the balance sheet revalues faster than deposits, following a cut in repo rate by the regulator.The NIM was 3.27 percent in the second quarter, lower than the 3.35 percent last quarter.
Asset quality remained stable with slippages declining and gross non-performing assets (GNPA) ratio declining from 1.40 percent in the first quarter to 1.24 percent in the second quarter, and net NPA ratio declining by 5 basis points sequentially to 0.42 percent. END
Published on October 18, 2025
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