HDFC Bank Q2 Results: Standalone net profit rises 11% YoY to Rs 18,641 cr; NII has a growth of 5%

India’s largest private sector lender HDFC Bank on Saturday reported its second quarter results for FY26, reporting 10.8% year-on-year (year-on-year) growth in standalone net profit at Rs 18,641.28 crore, compared to Rs 16,820.97 crore in the same period last year.

Further, the bank’s net interest income (NII) also witnessed a growth of 4.8% year-on-year and was reported at Rs 31,550 crore, up from Rs 30,110 crore in the second quarter of FY25.

The core net interest margin was 3.27% on total assets, indicating asset repricing exceeding deposit repricing, compared to 3.35% in the previous quarter ended June 30, 2025.

The bank’s net income rose 10.3% year-on-year to Rs 45,900 crore for the quarter ended September 30, 2025, compared to Rs 41,600 crore in the same period last year.

The bank posted healthy growth in deposits and advances for the September 2025 quarter, underscoring strong traction in the retail and corporate segments. Average deposits rose 15.1% year-on-year to Rs 27.10 lakh crore, while average CASA deposits rose 8.5% to Rs 8.77 lakh crore.

Both figures increased sequentially by approximately 2%, reflecting continued customer engagement and deposit mobilization. The bank’s asset quality improved both sequentially and year-on-year, with gross non-performing assets (GNPA) declining to 1.24% of gross advances as of September 30, 2025, compared to 1.40% in the previous quarter and 1.36% a year earlier. Excluding NPAs from the agriculture segment, the GNPA ratio stood at 0.99%, compared to 1.14% in June 2025 and 1.19% in September 2024.

The net NPA ratio also improved to 0.42% of net advances, reflecting prudent credit underwriting and effective recovery measures.

Total deposits at the end of the period stood at Rs 28.02 lakh crore as on September 30, 2025, registering an annual growth of 12.1%. CASA deposits rose 7.4%, with savings and current account balances at Rs 6.53 lakh crore and Rs 2.96 lakh crore, respectively.

On the lending front, average advances under management rose 9.0% y-o-y to Rs 27.94 lakh crore, while gross advances stood at Rs 27.69 lakh crore, up 9.9% y-o-y.

Growth was led by a 17.0% increase in SME lending, followed by 7.4% growth in retail lending and 6.4% growth in the corporate and wholesale segments. Foreign advances contributed 1.8% to the total loan amount, underscoring the bank’s stable performance across portfolios.

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