HDFC Bank Q2 Results: Net Profit Up 10.8% YoY To Rs 18,640 Cr On Lower Provisions; NII Crosses Rs 31,500 Cr

The financial results for the quarter that ended in September 2025 were made public by HDFC Bank on Saturday, October 18. The standalone Q2 FY26 results of HDFC Bank showed a stable performance with a robust year-on-year increase in all key metrics. The bank's net interest income for the second quarter of FY25 was Rs 31,550 crore, up 4.8% year on year from Rs 30,110 crore. Though it plummeted 34% sequentially, non-interest income came in at Rs 14,350 crore, representing a solid 25% YoY gain. As a result, net revenue was Rs 45,900 crore, up 10.4% YoY but down 13.7% quarter on quarter as a result of lower fee and treasury income.

While HDFC Bank's provisions fell precipitously QoQ to Rs 3,500 crore, the bank's operating expenses climbed 6.4% YoY to Rs 17,980 crore. Despite sequential slump in non-interest income, the bank's core performance was solid, as seen by its profit before tax, which climbed 11% YoY to Rs 24,420 crore, and its profit after tax, which jumped 10.8% YoY to Rs 18,640 crore.

The Q2FY26 (September 2025) standalone balance sheet of HDFC Bank demonstrated steady improvement in all key parameters. Net advances climbed by Rs 1,18,000 crore QoQ and Rs 2,51,300 crore YoY to Rs 27,46,400 crore. With government and debt securities accounting for Rs 8,53,300 crore of the total, investments totalled Rs 8,74,300 crore, down Rs 22,400 crore sequentially but up Rs 1,50,300 crore YoY. While fixed and other assets brought in Rs 2,17,100 crore, cash and equivalents fell to Rs 1,65,200 crore.

The total assets jumped by Rs 48,900 crore QoQ and Rs 3,14,900 crore YoY to Rs 40,03,000 crore. Deposits rose to Rs 28,01,800 crore on the liabilities side, representing a robust gain of Rs 37,700 crore QoQ and Rs 3,01,700 crore YoY. While equity and reserves were Rs 5,22,400 crore and other liabilities reached Rs 1,69,200 crore, borrowings totalled Rs 5,09,600 crore. At Rs 40,03,000 crore, total liabilities and equity were equal to the asset side, indicating steady balance sheet growth on both fronts.

Regarding asset quality, as of September 30, 2025, gross non-performing assets accounted for 1.24% of gross advances, compared to 1.40% on June 30, 2025, and 1.36% on September 30, 2024. As of September 30, 2025, net nonperforming assets accounted for 0.42% of net advances.

The bank's distribution network consists of 9,545 branches and 21,417 ATMs spread across 4,156 cities and towns as of September 30, 2025, compared to 9,092 branches and 20,993 ATMs spread across 4,088 cities and towns as of September 30, 2024. The bank has half of its branches in rural and semi-urban regions. Additionally, there are 15,253 business correspondents for HDFC Bank, most of whom are employed by Common Service Centres (CSC). As of September 30, 2025, there were 2,20,339 employees, compared to 2,06,758 in the same period in 2024.