HDFC Bank Q2 net profit rises 11% YoY to Rs 18,641 crore; asset quality improves

HDFC Bank Ltd reported an 10.8 percent year-on-year rise in net profit to Rs 18,641.3 crore for the September quarter (Q2 FY26), aided by steady growth in core income and stable asset quality. India's largest private sector lender's profit comfortably surpassed Street estimates, which had pegged the figure at Rs 16,714 crore for the quarter.

HDFC Bank’s net interest income (NII) -- the difference between interest earned and paid -- increased 4.8 percent year-on-year to Rs 31,551.5 crore, compared to Rs 30,113.9 crore in the same quarter last year. The growth was slightly ahead of the Street’s expectation of a 3 percent rise to Rs 31,105 crore, according to a Moneycontrol poll.

Provisions and contingencies for the quarter rose 29.6 percent year-on-year to Rs 3,500.5 crore from Rs 2,700.5 crore in the year-ago period.

Asset quality improved on a yearly basis. Gross non-performing assets (GNPA) stood at Rs 34,289.5 crore, nearly unchanged from Rs 34,250.6 crore a year earlier. The GNPA ratio declined to 1.24 percent from 1.36 percent in the same quarter last year, reflecting steady asset quality.