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HDFC Bank Q2 Profit Rises 4.7% to ₹19,510 Crore

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HDFC Bank reported ₹19,510 crore in Q2 FY27 profit, supported by lending growth despite weaker treasury income and higher provisions.

HDFC Bank Q2 Profit Rises 4.7% to ₹19,510 Crore as Lending Grows

By News National Editorial Team

MUMBAI, October 17, 2026: HDFC Bank, India's largest private-sector lender, reported a 4.7% year-on-year increase in standalone net profit for the July–September quarter of the 2026–27 financial year. Profit reached ₹19,510 crore, compared with ₹18,641 crore in the corresponding quarter of the previous year.

The results, announced on Saturday, showed continued growth in lending and deposits. However, weaker treasury income and higher provisions for potential loan losses limited the improvement in profitability.

Net interest income increases

The bank's net interest income (NII), which represents the difference between interest earned on loans and interest paid on deposits and other borrowings, rose 9.7% year-on-year to ₹34,619 crore.

Total loans increased 16.3%, while deposits grew 18.8% from a year earlier. The growth indicates continued demand for credit and the bank's efforts to attract customer deposits.

The gross non-performing asset ratio improved to 1.11% at the end of September, compared with 1.17% at the end of June. A lower gross non-performing asset ratio generally indicates an improvement in the proportion of loans classified as non-performing.

Nevertheless, provisions for potential bad loans and other contingencies increased 2.1% to ₹3,574 crore.

Treasury income weighs on results

Treasury trading gains declined sharply to ₹780 crore from ₹2,390 crore a year earlier. Other income, which includes earnings from investments and various banking activities, fell 3.6% to ₹13,831 crore.

The bank's profit was slightly below the average analyst estimate compiled by LSEG, according to Reuters. The figures suggest that growth in core lending income was partly offset by weaker gains from financial-market activities.

Leadership transition ahead

HDFC Bank also said Deputy Managing Director Kaizad Bharucha would step down at the end of December. Anup Bagchi is scheduled to take over as managing director and chief executive officer for a three-year term beginning October 27.

The transition comes as the bank faces continued scrutiny of profitability, governance and operational performance.

What the results mean

Investors will be watching deposit mobilisation, loan growth, asset quality and funding costs in the coming quarters. Strong lending growth can support revenue, but banks must also manage credit risks and maintain sufficient funding to meet customer demand.

Quarterly results alone do not determine a bank's future share-price performance. Investors should review the complete regulatory filing and consider broader market conditions before making decisions.

Source: Reuters — https://www.reuters.com/world/india/indias-hdfc-bank-quarterly-profit-rises-47-narrowly-misses-estimates-treasury-2026-10-17/

Additional source: Economic Times — https://m.economictimes.com/markets/stocks/earnings/hdfc-bank-q2-results-net-profit-rises-5-yoy-to-rs-19510-crore-nii-grows-10/articleshow/135010605.cms

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