HDFC Bank reported a net profit of Rs 18,641.3 Cr for the quarter ended September 30, 2025 (Q2 FY26), marking an approximate 10.8% increase compared to the same period last year. This figure surpassed market expectations, which had projected a profit of around Rs 16,714 Cr.
Net Interest Income (NII), a key metric reflecting earnings from core lending activities, rose 4.8% YoY to Rs 31,551.5 Cr from Rs 30,113.9 Cr in Q2 FY25. Other income, which includes fees, commissions, and service charges, grew about 25% YoY to Rs 14,350 Cr, indicating that the bank is increasingly earning from non-interest sources.
Asset quality remained stable. Gross Non-Performing Assets (GNPAs) stood at Rs 34,289.5 Cr, almost unchanged from Rs 34,250.6 Cr a year ago. The GNPA ratio improved to 1.24% from 1.36% in Q2 FY25, suggesting that loan growth outpaced the growth in bad assets.
Provisions and contingencies rose 29.6% YoY to Rs 3,500.5 Cr from Rs 2,700.5 Cr, reflecting a cautious approach toward potential future credit stress. Additionally, the bank recorded a one-time pre-tax gain of Rs 9,128.4 Cr from its subsidiary HDB Financial Services Ltd.’s IPO, following the sale of 13.51Cr shares at Rs 740 each. This gain significantly bolstered overall earnings for the period.
Analysts note that while the headline profit appears strong, the core banking growth may be more moderate, with a significant portion of earnings supported by the one-off IPO gain. The increase in provisions highlights the bank’s proactive stance on risk management despite stable asset quality.
Overall, HDFC Bank’s Q2 results reflect a combination of stable credit quality, diversified income sources, and strategic gains from subsidiaries, providing a balanced picture of performance in the current quarter.