India's Largest Private Lender Hit Record High After Posting 10.8% Profit Growth in Q2 FY26

HDFC Bank’s shares surged to a record high on Monday after the bank reported stronger-than-expected standalone profit growth for Q2 FY26. The stock climbed as much as 1.74 per cent to Rs 1,020 per share, supported by steady loan growth and higher trading income.

For the quarter ended September 30, 2025, HDFC Bank posted net revenue of Rs 45,900 crore, up 10.3 per cent from Rs 41,600 crore in Q2 FY25. Net interest income (NII) increased 4.8 per cent to Rs 31,550 crore from Rs 30,110 crore, while the core net interest margin (NIM) stood at 3.27 per cent, slightly lower than 3.35 per cent in the previous quarter due to faster asset repricing.

Other income rose to Rs 14,350 crore, led by fees and commissions of Rs 8,840 crore, foreign exchange and derivatives revenue of Rs 1,590 crore, and net trading gains of Rs 2,390 crore, up sharply from Rs 290 crore in Q2 FY25. Miscellaneous income, including recoveries and dividends, contributed Rs 1,530 crore. Operating expenses totaled Rs 17,980 crore, resulting in a cost-to-income ratio of 39.2 per cent. Provisions and contingencies were Rs 3,500 crore, with a total credit cost ratio of 0.51 per cent. Profit before Tax reached Rs 24,420 crore, while profit after tax (PAT) increased 10.8 per cent to Rs 18,640 crore.

For the half year ended September 30, 2025, total income stood at Rs 1,90,240 crore, up from Rs 1,69,200 crore in the corresponding period last year. Net revenue was Rs 99,070 crore, and PAT for the half year was Rs 36,800 crore, reflecting an 11.5 per cent year-on-year increase.

HDFC Bank’s total balance sheet reached Rs 4,003,000 crore, up from Rs 3,688,100 crore a year ago. Average deposits for the quarter were Rs 2,710,500 crore, a 15.1 per cent increase from the previous year, with CASA deposits at Rs 877,000 crore, up 8.5 per cent. Total end-of-period deposits were Rs 2,801,800 crore, with CASA deposits contributing Rs 652,700 crore from savings accounts and Rs 296,400 crore from current accounts, representing 33.9 per cent of total deposits. Time deposits stood at Rs 1,852,600 crore, up 14.6 per cent.

On the lending side, average advances under management were Rs 2,794,600 crore, up 9.0 per cent year-on-year. Gross advances were Rs 2,769,200 crore, with retail loans up 7.4 per cent, SME loans up 17.0 per cent, and corporate and wholesale loans up 6.4 per cent. Overseas advances accounted for 1.8 per cent of total advances.

Gross non-performing assets (GNPA) declined to 1.24 per cent of gross advances from 1.40 per cent in the previous quarter. Excluding agricultural NPAs, GNPA was 0.99 per cent, and net NPAs were 0.42 per cent. The bank maintained a total capital adequacy ratio of 20.0 per cent, Tier 1 CAR of 17.9 per cent, and Common Equity Tier 1 ratio of 17.5 per cent, well above the regulatory requirement of 11.9 per cent. Risk-weighted assets totaled Rs 27,841 crore.

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HDFC Bank’s branch network grew to 9,545 branches and 21,417 ATMs across 4,156 cities and towns. Half of the branches are in semi-urban and rural areas. The workforce increased to 2,20,339 employees from 2,06,758, supported by 15,253 business correspondents operating primarily through Common Service Centres (CSC).

On a consolidated basis, HDFC Bank reported net revenue of Rs 71,820 crore and PAT of Rs 19,610 crore for Q2 FY26, a 10.0 per cent increase year-on-year. Half-year consolidated PAT was Rs 35,870 crore. Key subsidiaries performed as follows: HDFC AMC (52.4 per cent stake) posted PAT of Rs 720 crore, up 24.5 per cent with AUM ~Rs 8,81,400 crore; HDFC Life (50.3 per cent stake) PAT Rs 450 crore, increased; HDB Financial Services (74.2 per cent stake) PAT Rs 580 crore, slight decrease, loan book Rs 1,11,400 crore, CAR 21.8 per cent; HDFC Securities (94.1 per cent stake) PAT Rs 210 crore, decreased, total revenue Rs 700 crore; HDFC ERGO (50.3 per cent stake) PAT Rs 180 crore, decreased.

HDFC Bank continues to show strong performance across revenues, deposits, advances, capital adequacy, and asset quality. Following the Q2 profit announcement, shares surged to a record Rs 1,020 per share on Monday, up 1.74 per cent. As of 10:35 am IST, the stock was trading at Rs 1,005.15, up 0.28 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.