HDFC Bank’s Q2FY27 net profit edges up 4.7%; asset quality improves

HDFC Bank on Saturday reported a standalone net profit of ₹19,509.3 crore for the September-ended quarter (Q2FY27), up 4.7% from a year earlier. Its top line or net interest income (NII) rose 9.7% year-on-year to ₹34,619.2 crore, the bank said.

This is the last quarterly financial earnings data to be announced under the leadership of Sashidhar Jagdishan, the managing director & CEO, whose term ends on October 26, 2026. The Reserve Bank of India has already approved the appointment of Anup Bagchi, an ICICI Group veteran, who was most recently serving as the MD & CEO of ICICI Prudential Life Insurance. He will be taking charge from October 27, 2026.

HDFC Bank’s net interest margin was at 3.16% on total assets, and 3.32% based on interest earning assets. NIM’s for the bank have been on the decline since the bank’s merger with HDFC in 2023.

Other income (non-interest revenue) for the quarter ended September 30, 2026 was ₹13,831 crore.

HDFC Bank’s gross NPA ratio improved to 1.11% for the September-ended quarter, from 1.24% a year earlier. The retail advances for the bank were at 1.08%. Gross advances for the bank came in at ₹32.19 lakh crore.

The cost-to-income ratio for the quarter was 39.1%. The Bank's average deposits were ₹31.66 lakh crore for the September 2026 quarter, a growth of 16.8% for the corresponding period a year earlier.

Provisions and contingencies stood at ₹3,570 crore during the quarter.

CASA deposits grew by 10.8% with savings account deposits, accounting for 3.16% of total deposits.

The total balance sheet size of the bank was at ₹45.77 lakh crore as of the September-ended quarter, as against ₹40,03 lakh crore a year earlier.

As far as the retail book is concerned, the book grew by 11.1% over the previous year, at ₹17.37 lakh crore, of which personal loans contributed ₹9.2 lakh crore. Small and mid-market loans were at ₹7.06 lakh crore.

Analysts have said that after the mega-merger with HDFC, HDFC Bank — which was seen as a low-margin, low-cost lender — is unlikely to surge sharply, in a few quarters. But it is expected to keep inching up gradually—as its top management said at the August AGM—which could see its RoE improve.