India’s largest private lender, HDFC Bank, on Saturday reported its Q2 FY26 results, registering a 10.8% year-on-year (YoY) growth in standalone net profit to ₹18,641.28 crore, up from ₹16,820.97 crore in the same quarter last year.
The bank’s net interest income (NII) also grew 4.8% YoY to ₹31,550 crore, compared to ₹30,110 crore in Q2 FY25. The core net interest margin (NIM) stood at 3.27% on total assets, slightly lower than 3.35% in Q1 FY26, indicating that asset repricing outpaced deposit repricing.
HDFC Bank Q2 Results FY26
HDFC Bank’s net revenue rose 10.3% YoY to ₹45,900 crore for the quarter ended September 30, 2025, from ₹41,600 crore a year ago.
The lender continued to demonstrate strong traction in deposits and advances. Average deposits climbed 15.1% YoY to ₹27.10 lakh crore, while average CASA deposits increased 8.5% to ₹8.77 lakh crore. Sequentially, both were up around 2%, reflecting sustained deposit mobilisation.
At the end of September 2025, total deposits stood at ₹28.02 lakh crore, a 12.1% annual rise. CASA balances grew 7.4%, with savings accounts at ₹6.53 lakh crore and current accounts at ₹2.96 lakh crore.
Loan Book Expansion Led by SME and Retail Segments
On the lending side, average advances under management rose 9.0% YoY to ₹27.94 lakh crore, while gross advances stood at ₹27.69 lakh crore, reflecting 9.9% growth over the previous year.
Growth was driven by a 17% surge in SME loans, followed by 7.4% in retail and 6.4% in corporate and wholesale segments. Overseas advances accounted for 1.8% of the total loan book, showing stable international exposure.
Asset Quality Strengthens Further
HDFC Bank’s asset quality showed marked improvement both sequentially and annually. The gross non-performing assets (GNPA) ratio declined to 1.24% of gross advances as of September 30, 2025, compared with 1.40% in June 2025 and 1.36% in September 2024.
Excluding the agricultural portfolio, the GNPA ratio was 0.99%, down from 1.14% a quarter earlier. The net NPA ratio also improved to 0.42%, underscoring the bank’s prudent underwriting practices and strong recovery efforts.
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