Important StoriesYES Bank reports quarterly profit but flags impact of Supreme Court ruling on AT-1 bondsIDBI Bank stake sale: FinMin cites High Court ruling, Budget speeches to reject irregularity claimsHDFC Bank reports 5% increase in Q2FY27 standalone net profit at ₹19,510 croreICICI Bank Q2 profit jumps 20.1% to ₹14,843 crore; margins come under pressureAxis Bank Q2 profit rises 37.6% to ₹7,003 crore as provisions fall 52.2%Follow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. HDFC Bank reports muted 4.70% increase in Q2 standalone net profit at ₹19,510 cr Net interest income rises 10% y-o-y to ₹34,619 crore By BL Mumbai Bureau Updated - October 17, 2026 at 09:20 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/hdfc-bank-reports-muted-470-increase-in-q2-standalone-net-profit-at-19510-cr/article71597174.eceCopy FILE PHOTO: HDFC Bank's logo is seen in this illustration taken June 19, 2025. REUTERS/Dado Ruvic/File Photo | Photo Credit: Dado Ruvic

HDFC Bank reported a muted 4.70 per cent year-on-year (y-o-y) increase in second quarter (Q2FY27) standalone net profit at ₹19,510 crore, with a decent rise in net interest income being offset by decline in other income and increase in tax expense.

India’s second largest bank, which logged a net profit of 18,641 crore in the year ago period, reported a robust growth in advances and improvement in asset quality in the reporting quarter.

Net interest income (interest income less interest expended) rose 10 per cent y-o-y to ₹34,619 crore (₹31,551.50 crore in Q2FY26).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss (including revaluation) from investments, dividends from subsidiaries and recoveries from accounts previously written off, declined 4 per cent y-o-y to ₹13,831 crore (₹14,350 crore). This is mainly due to treasury trading gains dipping significantly to ₹780 crore (₹2,390 crore).

Net interest margin declined to 3.16 per cent in the reporting quarter against 3.27 per cent in the year ago period.

Srinivasan Vaidyanathan, CFO, said: “There there were certain constraints and certain choices that we made over the last two quarters, and so the margin is slightly lower than where we had envisaged it would be. It would take a couple of more quarters to pull it back.”

Provisions nudged up 2 per cent y-o-y to ₹3,574 crore (₹3,501 crore). Tax expense rose 11 per cent y-o-y to ₹6,400 crore (₹5,782 crore).

Gross non-performing assets (NPAs) position improved to 1.11 per cent of gross advances as at September-end 2026 against 1.24 per cent as at September-end 2025. Net NPAs position too improved to 0.37 per cent of net advances against 0.42 per cent.

Total deposits grew by a robust 19 per cent y-o-y to stand at ₹33,27,449 crore as at September-end 2026. Low-cost current account, savings account (CASA) deposits declined to 31.6 per cent of total deposits as of September 30, 2026 from 33.9 per cent as of September 30, 2025.

Advances rose by a healthy 16 per cent yoy to stand at ₹32,19,500 crore as at September-end 2026. Retail loans grew 12 per cent yoy; small and mid-market enterprises loans were up 23 per cent; and corporate and other wholesale advances increasing 16 per cent.

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