HDFC Bank Ltd, India’s largest private sector lender, reported a 4.7% year-on-year increase in standalone profit after tax (PAT) to ₹19,510 crore for the second quarter of FY27, compared with ₹18,641 crore in the corresponding quarter of the previous financial year.
Net interest income (NII) rose 9.7% year-on-year to ₹34,620 crore in the quarter ended September 30, 2026, from ₹31,550 crore a year earlier, while net revenue increased 5.6% to ₹48,450 crore from ₹45,900 crore.
The bank’s net interest margin (NIM) stood at 3.16% of total assets and 3.32% of interest-earning assets during the quarter.
Other income, excluding interest income, amounted to ₹13,830 crore in Q2 FY27, supported by growth in fee income. However, lower treasury trading gains and foreign exchange and derivatives revenue partly offset the increase in fees and commissions.
Fee income grows 9.6%
Fees and commissions increased 9.6% year-on-year to ₹9,690 crore in Q2 FY27 from ₹8,840 crore in the year-earlier quarter.
Foreign exchange and derivatives revenue declined 2.5% to ₹1,550 crore from ₹1,590 crore, while treasury trading gains fell 67.4% to ₹780 crore from ₹2,390 crore.
Miscellaneous income, including recoveries and dividends, rose 18.3% to ₹1,810 crore from ₹1,530 crore.
The decline in treasury gains was a key factor moderating the growth in other income, despite the improvement in fee-based revenue.
Deposits cross ₹33 lakh crore
HDFC Bank’s total deposits at the end of September 2026 increased 18.8% year-on-year to ₹33,27,400 crore.
Average deposits rose 16.8% to ₹31,66,400 crore in Q2 FY27 from ₹27,10,500 crore in the corresponding quarter last year. Sequentially, average deposits increased 5.1% from ₹30,11,500 crore in Q1 FY27.
Average current account and savings account (CASA) deposits grew 10.7% year-on-year to ₹9,71,200 crore from ₹8,77,000 crore. On a sequential basis, average CASA deposits increased 1.5% from ₹9,57,000 crore.
Total CASA deposits increased 10.8% year-on-year, with savings account deposits at ₹7,16,300 crore and current account deposits at ₹3,35,600 crore.
Time deposits rose 22.8% year-on-year to ₹22,75,500 crore. CASA deposits accounted for 31.6% of total deposits as of September 30, 2026, reflecting the faster growth in time deposits.
Advances rise 16.3% to ₹32.2 lakh crore
HDFC Bank’s gross advances increased 16.3% year-on-year to ₹32,19,500 crore as of September 30, 2026.
Average advances under management, adjusted for transfers through inter-bank participation certificates, bills rediscounted and securitisation or assignment, rose 14.1% year-on-year to ₹31,87,200 crore from ₹27,94,600 crore.
Sequentially, average advances under management increased 4.9% from ₹30,38,600 crore in the June 2026 quarter.
Advances under management grew 15.3% year-on-year at the end of September.
Among key segments, loans to small and mid-market enterprises recorded the fastest growth, increasing 23.5% year-on-year. Corporate and other wholesale loans rose 16.4%, while retail loans grew 11.7%.
Overseas advances accounted for 3.3% of the bank’s total advances.
The bank’s total balance sheet size expanded 14.4% year-on-year to ₹45,77,800 crore as of September 30, 2026, from ₹40,03,000 crore a year earlier.
Gross NPA ratio improves to 1.11%
HDFC Bank’s gross non-performing asset (NPA) ratio improved to 1.11% of gross advances as of September 30, 2026, from 1.17% at the end of June 2026 and 1.24% a year earlier.
Excluding NPAs in the agricultural segment, the gross NPA ratio stood at 0.87%, compared with 0.91% in the preceding quarter and 0.99% in September 2025.
Net NPAs accounted for 0.37% of net advances as of September 30, 2026. The corresponding figures for the previous periods were not provided in the disclosed information.
Capital adequacy remains above regulatory requirement
HDFC Bank’s total capital adequacy ratio under Basel III stood at 18.9% as of September 30, 2026, compared with 20% a year earlier. This was above the regulatory requirement of 11.9%.
The Tier 1 capital adequacy ratio stood at 17.2%, while the Common Equity Tier 1 (CET1) ratio was 17.1%.
Risk-weighted assets amounted to ₹31,79,300 crore.
Branch network expands
HDFC Bank had 9,706 branches and 20,881 ATMs as of September 30, 2026, serving 4,177 cities and towns.
A year earlier, the bank had 9,545 branches and 21,417 ATMs across 4,156 cities and towns. Half of its branches were located in semi-urban and rural areas.
The bank also had 14,365 business correspondents, primarily operating through Common Service Centres.
Its employee count stood at 2,10,109 at the end of September 2026, compared with 2,20,339 a year earlier, a decline of 4.6%.