HDFC Bank, the largest private sector bank in India, reported a 10.82 per cent YoY profit growth in the second quarter of fiscal year 2025-26. The bank reported a net profit of Rs 18,641 crore in Q2 FY26, compared to Rs 16,820 crore in Q2 FY25.
Further, HDFC Bank’s Net Interest Income IN the quarter grew by 4.8 per cent. The bank posted an NII of Rs 31,550 crore in Q2 FY25. In the corresponding quarter of the previous fiscal year, the bank’s NII was at Rs 30,110 crore.
HDFC Bank’s Net Interest Margin slipped on a quarterly basis. The bank’s NIM in Q2 FY26 was at 3.27 per cent against a NIM of 3.35 per cent in Q1 FY26.
HDFC Bank loans and deposits in Q2
HDFC Bank’s gross non-performing assets ratio improved to 1.24 per cent as of September from 1.40 per cent three months ago and 1.36 per cent in the year-ago period.
The bank’s overall provisions increased to Rs 3,500 crore from Rs 2,700 crore in the year-ago period, but were much lower than the Rs 14,441 crore recorded in the previous quarter.
HDFC Bank’s loans grew 9.9 per cent in the quarter compared to a year ago, driven by a pickup in small and mid-sized business loans. The bank, which has been strengthening its deposit base following a merger with its parent, HDFC, two years ago, saw deposits grow 12 per cent year-over-year in this quarter.