HDFC Bank Q2 Results Good Or Bad: Largest Indian Bank Earns Rs 19,510 Crore Profit, NII Up 10% YoY; Highlights

India's largest lender in terms of market share, HDFC Bank, posted a 4.7% growth on a year-on-year basis in net profit, while its net interest income (NII) rose almost 10% YoY in the Q2 of FY27. HDFC Bank will react to its quarterly performance on Monday next week.

HDFC Bank Q2 Results: Net Profit

HDFC earned a standalone net profit of Rs 19,510 crore in Q2FY27, rising by 4.7% YoY, missing street estimates narrowly owing to weaker treasury income and a surge in provisions for gross NPA. PAT excluding treasury trading gains, grew by approximately 12.6% over the quarter ended September 30, 2025.

HDFC Bank Q2 Results: Net Interest Income (NII)

HDFC Bank's net interest income (NII), which is the difference between interest earned and expended, came in at Rs 34,620 crore, registering a growth of 9.7% from Rs 31,550 crore in same quarter a year ago. Net interest margins stood at 3.16% on total assets and at 3.32% on interest earnings assets.

The bank's revenue also climbed to Rs 48,450 crore in Q2FY27 versus Rs 45,900 crore in Q2FY26. Other income (non-interest revenue) for the quarter ended September 30, 2026, stood at Rs 13,830 crore.

HDFC Bank Q2 Results: Provisions, NPA

In the quarter under review, the bank recorded an 18.7% YoY jump in provisions and contingencies against bad loans to Rs 3,574 crore from Rs 3,010 crore in the preceding quarter. Provisions rose by 2.1% from Rs 3,501 crore in Q2FY26. The total credit cost ratio was at 0.44% for the quarter ended September 30, 2026.

In case of the asset quality, gross non-performing assets were at 1.11% of gross advances in Q2FY27 (0.87% excluding NPAs in the agricultural segment), as against 1.17% as on June quarter (0.91% excluding NPAs in the agricultural segment), and 1.24% in Q2FY26 (0.99% excluding NPAs in the agricultural segment). Net nonperforming assets were at 0.37% of net advances as on September 30, 2026.

HDFC Bank Q2 Result: Loans, Deposits

The Bank's average deposits were Rs 3,166,400 crore for the September 2026 quarter, a growth of 16.8% over Rs 2,710,500 crore for the September 2025 quarter, and 5.1% over Rs 3,011,500 crore for the June 2026 quarter.

Meanwhile, gross advances were at Rs 3,219,500 crore as of September 30, 2026, an increase of 16.3% over September 30, 2025. Advances under management grew by 15.3% over September 30, 2025. Retail loans grew by 11.7%, small and mid-market enterprises loans grew by 23.5% and corporate and other wholesale loans grew by 16.4%. Overseas advances constituted 3.3% of total advances.

Furthermore, the bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% in Q2FY27 (versus 20.0% in Q2FY26) as against a regulatory requirement of 11.9%. Tier 1 CAR was at 17.2% and Common Equity Tier 1 Capital ratio was at 17.1% as of September 30, 2026. Risk-weighted Assets were at Rs 3,179,300 crore.

As of September 30, 2026, the Bank's distribution network was at 9,706 branches and 20,881 ATMs across 4,177 cities/towns.

HDFC Bank Q2 Share Price, ADR

Ahead of the earnings, HDFC Bank share price closed at Rs 728.10 apiece on BSE, with market cap of Rs 11,22,628.07 crore this week. Overall, in the October 12-16 trading week, HDFC shares climbed by 2.50%. YTD, however, the stock is down by 26.5%.

Also, HDFC Bank's American depository receipts (ADR) dropped 1% overnight to close at $23.60 on NYSE.

The stock will react to Q2 results on Monday, October 19, 2026.