Mumbai – HDFC Bank Ltd on Friday reported an 11 percent year-on-year increase in net profit to ₹18,641.3 crore for the quarter ended September (Q2 FY26), driven by higher other income and stable core lending performance. The results comfortably surpassed market expectations of about ₹16,700 crore.
India’s largest private sector lender said its net interest income (NII) — the difference between interest earned and paid — rose 4.8 percent to ₹31,551.5 crore from ₹30,113.9 crore a year earlier. The figure came in slightly ahead of analysts’ projections of a 3 percent rise.
The bank’s other income jumped 25 percent year-on-year to ₹14,350 crore, providing a meaningful boost to overall profitability. Provisions and contingencies increased 29.6 percent to ₹3,500.5 crore, compared with ₹2,700.5 crore in the same period last year.
Despite the rise in provisions, asset quality remained stable. Gross non-performing assets (GNPA) stood at ₹34,289.5 crore, nearly unchanged from ₹34,250.6 crore a year earlier. The GNPA ratio improved to 1.24 percent, down from 1.36 percent, reflecting sustained credit discipline.
One-time gain from HDB Financial IPO
HDFC Bank’s quarterly earnings were also supported by a one-time gain related to the initial public offering of its subsidiary, HDB Financial Services Ltd. The subsidiary’s IPO, launched on June 25, 2025, comprised a fresh issue of ₹2,500 crore and an offer for sale of ₹10,000 crore by HDFC Bank.
Under the offer for sale, the lender divested 13.51 crore shares at ₹740 each, resulting in a pre-tax gain of ₹9,128.4 crore (net of related expenses) during the half year ended September 30, 2025.
Analysts said the results show the bank’s lending margins and asset quality have stabilised after a challenging merger transition last year. The steady growth in NII and improvement in asset quality indicate sustained loan demand and effective risk management.
HDFC Bank continues to maintain one of the strongest balance sheets in the sector, supported by a large retail deposit base and diversified loan book.
The bank’s latest results also come amid a broader recovery in the banking sector, with other major lenders such as PNB and Yes Bank also reporting double-digit profit growth for the quarter.
