HDFC Bank has reported healthy 11% growth in net profit at Rs 18641.28 crore for the quarter ended September 2025 (Q2FY2026). The bank has posted 5% growth in net interest income (NII), while the core fee income of the bank improved 9% in Q2FY2026. The Net Interest Margin (NIM) of the bank declined to 3.27% in Q2FY2026 compared to 3.46% in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business with 10% surge in loan book. The asset quality of the bank has improved in Q2FY2026. Bank has reduced the credit to deposit ratio to 98.8% at end September 2025 from 100.8% at end September 2024. CASA ratio of the bank has declined to 33.9% at end September 2025 from 35.3% at end September 2024.
Asset quality improves: The bank has improved asset quality in Q2FY2026.
The fresh slippages of loans declined to Rs 7400 crore in Q2FY2026 compared with 9000 crore in previous quarter and Rs 7800 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 6800 crore, while the write-off of loans was at Rs 3300 crore in Q2FY2026. Provision coverage ratio was steady at 67.00% at end September 2025 compared to 67.00% a quarter ago and eased from 70.00% a year ago. The capital adequacy ratio of the bank stood at 20.0% with Tier I ratio at 17.9% at end September 2025. The risk weighted assets of the bank has increased 12% YoY to Rs 2784100 crore end September 2025,
| Asset Quality Indicators: HDFC Bank |
| ' | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Variation |
| QoQ | YTD | YoY |
| Gross NPA (Rs Crore) | 34289.48 | 37040.80 | 35222.64 | 36018.58 | 34250.62 | -7 | -3 | 0 |
| Net NPA (Rs Crore) | 11447.29 | 12275.99 | 11320.43 | 11587.54 | 10308.54 | -7 | 1 | 11 |
| % Gross NPA | 1.24 | 1.40 | 1.33 | 1.42 | 1.36 | -16 | -9 | -12 |
| % Net NPA | 0.42 | 0.47 | 0.43 | 0.46 | 0.41 | -5 | -1 | 1 |
| % PCR | 67.00 | 67.00 | 68.00 | 68.00 | 70.00 | 0 | -100 | -300 |
| % CRAR - Basel III | 19.96 | 19.88 | 19.55 | 19.97 | 19.77 | 8 | 41 | 19 |
| % CRAR - Tier I - Basel III | 17.90 | 17.80 | 17.70 | 18.03 | 17.79 | 10 | 20 | 11 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
'
Business Highlights:
Healthy business growth: The business of the bank has increased 11% YoY to Rs 5570989 crore end September 2025, driven by 10% increase in advances to Rs 2769200 crore. Deposits moved up 12% to Rs 2801789 crore at end September 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 7% YoY to Rs 949100 crore at end September 2025. The current account deposits increased 8% to Rs 296400 crore, while saving account deposits rose 7% to Rs 652700 crore end September 2025. The CASA ratio declined to 33.9% at end September 2025 compared to 35.3% at end September 2024, while remained steady from 33.9% a quarter ago. The term deposits have increased 15% to Rs 1852689 crore end September 2025.
Loan growth improves: Advances growth was driven by retail loans rising 7% YoY to Rs 1432000 crore at end September 2025, while credit to agriculture increased 14% to Rs 123400 crore and MSME 17% to Rs 571800 crore at end September 2025. The corporate credit has increased 6% to Rs 741600 crore end September 2025. The overseas credit has jumped 16% to Rs 49850 crore end September 2025.
Investment book of the bank increased 21% YoY to Rs 874321 crore at end September 2025.
Margins decline: The bank has shown 58 bps YoY dip in cost of deposits to 6.44%, while yield on advances plunged 68 bps YoY to 11.08% in Q2FY2026. Thus, the NIM has declined 19 bps YoY to 3.27% and 8 bps qoq to 3.27% in Q2FY2026.
Branch expansion: The bank has added 46 branches and 166 ATMs in Q2FY2026, taking overall tally to 9545 branches and 21417 ATM`s end September 2025.
Book value of the bank stood at Rs 337.3 per share at end September 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 329.7 per share at end September 2025.
Quarterly Performance
NII rises as loan growth accelerates: Bank has recorded 4% increase in the interest earned at Rs 76690.70 crore, while interest expenses increased 3% to Rs 45139.20 crore in Q2FY2026. NII improved 5% to Rs 31551.50 crore in the quarter ended September 2025.
Healthy growth in the core fee income: Bank has posted strong 9% growth in core fee income to Rs 8840 crore, while forex income increased 9% to Rs 1590 crore. Further, the treasury income surged 724% to Rs 2390 crore, leading to 25% jump in the overall non-interest income to Rs 14350.02 crore in the quarter ended September 2025. However, the recoveries and other income declined 4% to Rs 1530 crore
Expenses ratio declines: The operating expenses of the bank increased 6% to Rs 17977.92 crore, as other expenses moved up 6% to Rs 11516.63 crore, while employee expenses increased 8% to Rs 6461.29 crore in Q2FY2026. Cost to income ratio improved to 39.2% in Q2FY2026 compared with 40.6% in Q2FY2025, helping the Operating Profit to increase 13% to Rs 27923.60 crore.
Provisions and contingencies rise: The bank has shown 30% increase in provisions to Rs 3500.53 crore.
Effective tax rate was steady at 23.7% in Q2FY2026 from 23.6% in Q2FY2025. Net Profit rose by 11% YoY to Rs 18641.28 crore during quarter ended September 2025.
Consolidated Financial Results:
The Bank's consolidated net revenue was Rs 71820 crore for Q2FY2026. The consolidated profit after tax increased 10% to Rs 19610 crore in Q2FY2026. The consolidated profit after tax was Rs 35870 crore crore for H1FY2026.
Subsidiary performance
HDB Financial Services (HDBFSL), posted net revenue of Rs 2850 crore. Profit after tax was Rs 580 crore in Q2FY26 compared to Rs 590 crore for Q2FY2025. Profit after tax was Rs 1150 crore in H1FY2026. The total loan book was Rs 111400 crore at end September 2025. Stage 3 loans were at 2.81% of gross loans. Total CAR was at 21.8% with Tier-I CAR at 17.3%. HDFC Life Insurance Company (HDFC Life), in which the Bank holds a 50.3% stake, is a leading life insurance solutions provider. Profit after tax for Q2FY2026 was Rs 450 crore compared to Rs 430 crore for Q2FY2025. Profit after tax for H1FY2026 was Rs 990 crore. HDFC ERGO General Insurance Company (HDFC ERGO), in which the Bank holds a 50.3% stake, offers a range of general insurance products. Profit after tax for Q2FY2026 was Rs 180 crore compared to Rs 200 crore for Q2FY2025. Profit after tax for H1FY2026 was Rs 390 crore. HDFC Asset Management Company Ltd (HDFC AMC), in which the Bank holds a 52.4% stake, is the Investment Manager to HDFC Mutual Fund, and offers a comprehensive suite of savings and investment products. For Q2FY2026, HDFC AMC's Quarterly Average Assets Under Management were approximately Rs 881400 crore. Profit after tax for Q2FY2026 was Rs 720 crore compared to Rs 580 crore for Q2FY2025, a growth of 24.5%. Profit after tax for H1FY2026 was Rs 1470 crore. HDFC Securities (HSL), in which the Bank holds a 94.1% stake, is amongst the leading broking firms. For Q2FY2026, HSL's total revenue was Rs 700 crore. Profit after tax for Q2FY2026 was Rs 210 crore, as against Rs 320 crore for Q2FY2025. Profit after tax for H1FY2026 was Rs 440 crore.
Financial Performance H1FY2026:
Bank has posted 12% increase in net profit to Rs 36796.50 crore in the half year ended September 2025 (H1FY2026). The net interest income increased 5% to Rs 62989.48 crore, while non-interest income moved up 63% to Rs 36079.85 crore, pushing up net total income by 21% to Rs 99069.33 crore in H1FY2026. The operating expenses increased 6% to Rs 35411.76 crore, while provision and contingencies galloped 238% to Rs 17942.16 crore, allowing profit before tax to increase 6% to Rs 45715.41 crore in H1FY2026. The cost-to-income ratio improved to 35.7% in H1FY2026 compared to 40.8% in H1FY2025. An effective tax rate declined to 19.5% in H1FY2026 compared to 23.8% in H1FY2025. The net profit has increased 12% to Rs 36796.50 crore in H1FY2026. '
| HDFC Bank: Results |
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 76690.70 | 74016.91 | 4 | 154160.91 | 147050.05 | 5 | 300517.03 | 258340.56 | 16 |
| Interest Expended | 45139.20 | 43903.01 | 3 | 91171.43 | 87099.01 | 5 | 177846.95 | 149808.09 | 19 |
| Net Interest Income | 31551.50 | 30113.90 | 5 | 62989.48 | 59951.04 | 5 | 122670.08 | 108532.47 | 13 |
| Other Income | 14350.02 | 11482.73 | 25 | 36079.85 | 22150.84 | 63 | 45632.28 | 49240.99 | -7 |
| Net Total Income | 45901.52 | 41596.63 | 10 | 99069.33 | 82101.88 | 21 | 168302.36 | 157773.46 | 7 |
| Operating Expenses | 17977.92 | 16890.89 | 6 | 35411.76 | 33511.50 | 6 | 68174.89 | 63386.01 | 8 |
| Operating Profits | 27923.60 | 24705.74 | 13 | 63657.57 | 48590.38 | 31 | 100127.47 | 94387.45 | 6 |
| Provisions & Contingencies | 3500.53 | 2700.46 | 30 | 17942.16 | 5302.52 | 238 | 11649.42 | 23492.14 | -50 |
| Profit Before Tax | 24423.07 | 22005.28 | 11 | 45715.41 | 43287.86 | 6 | 88478.05 | 70895.31 | 25 |
| Provision for tax | 5781.79 | 5184.31 | 12 | 8918.91 | 10292.14 | -13 | 21130.70 | 10083.03 | 110 |
| PAT | 18641.28 | 16820.97 | 11 | 36796.50 | 32995.72 | 12 | 67347.35 | 60812.28 | 11 |
| EPS*(Rs) | 48.5 | 88.2 | ' | 47.9 | 86.5 | ' | 88.0 | 80.0 | ' |
| Equity | 1536.4 | 763.1 | ' | 1536.4 | 763.1 | ' | 765.2 | 759.7 | ' |
| Adj BV (Rs) | 329.7 | 589.2 | ' | 329.7 | 589.2 | ' | 640.1 | 568.3 | ' |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 1, Figures in Rs crore |
| Source: Capitaline Corporate Database |
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