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

HDFC Bank

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26 Aug, 2025 12:21

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HDFC Bank Ltd reported a 10.8 percent year-on-year rise in net profit to Rs 18,641.3 crore for the September quarter (Q2 FY26), aided by higher other income and steady core performance. 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.

Other income rose 25 percent year-on-year to Rs 14,350 crore during the quarter, providing a meaningful boost to overall earnings.

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.

During the quarter, HDFC Bank also booked a one-time gain linked to its subsidiary HDB Financial Services Ltd’s initial public offering. On June 25, 2025, HDB Financial launched its IPO comprising a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank. Under the OFS, the bank divested 13.51 crore shares at Rs 740 apiece, resulting in a pre-tax gain of Rs 9,128.4 crore (net of estimated IPO-related expenses) during the half year ended September 30, 2025.