HDFC Q2 FY26 Results: Profit Jumps 10.8% YoY as Loan Growth and Asset Quality Strengthen

HDFC Bank has announced its Q2 FY26 results, and the numbers reflect steady, disciplined growth across key areas — profitability, deposits, and credit quality. Despite a slight dip in margins, the overall story is one of stability and resilience, a pattern that investors and customers have come to expect from India’s largest private lender.

Strong Financial Performance in Q2 FY26

According to the official release, HDFC Bank’s net profit for Q2 FY26 stood at ₹18,641 crore, a 10.8% rise year-on-year compared to ₹16,821 crore in the same quarter last year.
The bank’s net revenue grew 10.3% to ₹45,900 crore, backed by solid lending activity and higher non-interest income.

• Net Interest Income (NII): ₹31,550 crore, up 4.8% YoY
  
• Core Net Interest Margin (NIM): 3.27% on total assets (vs. 3.35% in the previous quarter)
  
• Other Income: ₹14,350 crore, led by fees, commissions, and trading gains
  

While NIMs softened slightly, the overall business growth and strong non-interest income ensured that profitability remained on track. The cost-to-income ratio for the quarter was 39.2%, showing efficient cost management.

Deposits and Advances Drive the Growth Engine

The HDFC Q2 FY26 Results show a consistent rise in deposits and advances, signaling robust demand and trust in the bank’s franchise.
As of September 30, 2025, total deposits reached ₹28.0 lakh crore, marking a 12.1% year-on-year growth.

Breakdown of deposits:

• CASA deposits: ₹9.49 lakh crore (Current + Savings Accounts)
  
• Time deposits: ₹18.53 lakh crore
  
• CASA ratio: 33.9%
  

On the lending side, gross advances stood at ₹27.7 lakh crore, up 9.9% YoY.

• Retail loans grew by 7.4%
  
• SME (small and mid-market) loans rose 17%
  
• Corporate and wholesale loans increased 6.4%
  

These numbers underline the bank’s balanced growth approach — expanding retail while maintaining healthy momentum in the SME segment.

Asset Quality: Clean and Improving

A standout feature in the HDFC Q2 FY26 Results is the improvement in asset quality.
The Gross NPA (Non-Performing Assets) ratio declined to 1.24% from 1.40% in the previous quarter, while the Net NPA ratio stood at a comfortable 0.42%.

Even excluding agricultural NPAs, the GNPA would be just 0.99% — reflecting the bank’s disciplined credit management.
The provisions for the quarter were ₹3,500 crore, keeping the credit cost ratio at 0.51%.

Subsidiary Performance Adds to Overall Strength

The HDFC Q2 FY26 Results also reflect the contributions of the bank’s subsidiaries, each adding strength to the group’s consolidated performance.

At the group level, consolidated net profit rose 10% YoY to ₹19,610 crore, while consolidated revenue reached ₹71,820 crore.

Capital Adequacy and Network Expansion

HDFC Bank continues to maintain one of the strongest capital positions in the industry.
The Capital Adequacy Ratio (CAR) stood at 20.0%, well above the regulatory requirement of 11.9%.
The Tier 1 ratio was 17.9%, and the Common Equity Tier 1 (CET1) stood at 17.5%.

On the operational front, the bank’s branch network expanded to 9,545 branches and 21,417 ATMs across 4,156 cities and towns. Half of these branches are in semi-urban and rural areas — a key factor driving deposit growth.
The total employee count rose to 2.2 lakh, reflecting HDFC’s continued investment in service quality and outreach

HDFC Q2 FY26 Results: Key Numbers at a Glance

Final Take: Steady, Reliable, and Poised for Growth

The HDFC Q2 FY26 Results once again underline the bank’s consistent approach to sustainable growth. With healthy profitability, expanding deposits, improving asset quality, and a strong capital position, HDFC Bank continues to lead by example.

Even as margins adjust in a shifting rate environment, the bank’s resilience and adaptability keep it well-positioned for the future. For investors looking for stability and long-term value, HDFC Bank’s Q2 FY26 performance reinforces why it remains one of India’s most trusted financial institutions.