A CNBC TV18 poll had projected a 5 percent increase in net profit to Rs 19,567 crore and a 10 percent rise in NII to Rs 34,861 crore. Both reported figures were within 1 percent of the estimates.
HDFC Bank's net interest margin (NIM) on total assets stood at 3.16 percent, down from 3.26 percent in the previous quarter. The NIM on interest-earning assets during the July-September quarter was 3.32 percent.
Provisions and contingencies increased 18.7 percent quarter-on-quarter to Rs 3,574 crore from Rs 3,010 crore in the June quarter. On a year-on-year basis, provisions rose 2.1 percent from Rs 3,501 crore.
Asset Quality Improves as Gross and Net NPAs Decline
HDFC Bank's gross non-performing asset (GNPA) ratio improved to 1.11 percent as of September 30, 2026, compared with 1.17 percent in the preceding quarter and 1.24 percent a year earlier.
Excluding non-performing assets in the agricultural segment, the GNPA ratio stood at 0.87 percent, down from 0.91 percent in June 2026 and 0.99 percent in September 2025.
Gross non-performing assets stood at Rs 35,810 crore at the end of September, marginally lower than Rs 35,846 crore in the preceding quarter. Net non-performing assets declined 4.1 percent sequentially to Rs 11,851 crore from Rs 12,357 crore.
The net NPA ratio stood at 0.37 percent at the end of the September quarter, reflecting an improvement in the bank's asset quality compared with the previous quarter and the corresponding period last year.
Advances and Deposits Record Double-Digit Growth
HDFC Bank's gross advances increased 16.3 percent year-on-year to Rs 32,19,500 crore as of September 30, 2026, while advances under management grew 15.3 percent.
Retail loans recorded growth of 11.7 percent, while loans to small and mid-market enterprises increased 23.5 percent. Corporate and other wholesale loans expanded 16.4 percent.
Average advances under management stood at Rs 31,87,200 crore during the quarter, registering year-on-year growth of 14.1 percent and sequential growth of 4.9 percent.
Total deposits rose 18.8 percent year-on-year to Rs 33,27,400 crore at the end of September. Average deposits increased 16.8 percent to Rs 31,66,400 crore, marking sequential growth of 5.1 percent.
Current account and savings account (CASA) deposits grew 10.8 percent year-on-year and accounted for 31.6 percent of total deposits. Time deposits increased 22.8 percent during the period.
Capital Adequacy and Operating Performance
HDFC Bank's capital adequacy ratio under Basel III stood at 18.9 percent as of September 30, 2026, compared with 20 percent a year earlier. The ratio remained above the regulatory requirement of 11.9 percent.
The bank's Tier 1 capital adequacy ratio stood at 17.2 percent, while its Common Equity Tier 1 (CET1) ratio was 17.1 percent.
Net revenue for the quarter reached Rs 48,450 crore, compared with Rs 45,900 crore in the corresponding period a year earlier. Other income stood at Rs 13,830 crore, including Rs 9,690 crore from fees and commissions.
Treasury trading gains declined to Rs 780 crore from Rs 2,390 crore in the corresponding quarter last year.
Operating expenses increased to Rs 18,970 crore from Rs 17,980 crore a year earlier, while the cost-to-income ratio stood at 39.1 percent.
The bank said net profit excluding treasury trading gains grew approximately 12.6 percent year-on-year, indicating stronger growth in earnings on this measure despite the decline in treasury trading gains.
HDFC Bank Share Price and Market Capitalisation
HDFC Bank shares closed 0.28 percent higher at Rs 728.85 on Friday, ahead of the second-quarter results announcement.
Despite the marginal gain in the previous trading session, the stock has declined 26.5 percent so far in 2026, compared with an 11.5 percent fall in the Nifty 50.
The bank's market capitalisation stood at approximately Rs 11.24 lakh crore. The quarterly results highlighted growth in net profit, interest income, advances and deposits, alongside improving asset quality, while treasury trading gains remained significantly lower than in the corresponding quarter last year.
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