HDFC Bank Q2 Results: Margins at record low; Asset Quality stable

HDFC Bank, India’s biggest economic sector loan provider, reported September quarter results on Saturday, October 17, which were in-line with expert expectations.

Net Interest Income (NII) or the bank’s core earnings grew 9.7% in Q2FY26 to 34,620 crore from 31,552 in 2015. A CNBC-TV18 survey had actually approximated an NII of 34,861 crore.Net earnings for the September quarter stood at 19,510 crore, up 4.7% from 18,641 crore in Q2FY26. The bank’s bottom line stood in line with the CNBC-TV18 survey price quote of 19,567 crore.HDFC Bank’s net interest margin (NIM) decreased to 3.16% in the September quarter, its least expensive on record, compared to 3.26% in the June quarter.The bank’s treasury trading earnings decreased 67.4% year-on-year to 780 crore, compared to 2,390 crore in Q2FY26. Omitting treasury trading gains, HDFC Bank’s net earnings grew 12.6% year-on-year, compared to reported development of 4.7%.The bank’s cost-to-income ratio stood at 39.1% throughout the quarter. Its overall credit expense ratio was 0.44%.Arrangements stood at 3,574 crore, compared to 3,010 crore in the previous quarter and 3,501 crore in the year-ago quarter.HDFC Bank’s property quality stayed steady throughout the September quarter, with gross non-performing properties (GNPA) in outright terms at 35,810 crore, compared to 35,846 crore in June.Net non-performing possessions (NNPA) stood at 11,851 crore, versus 12,357 crore in the previous quarter. In portion terms, the gross NPA ratio stood at 1.11%, while the net NPA ratio was 0.37%, compared to 1.17% and 0.41%, respectively, in the June quarter. The Street had actually approximated the gross NPA ratio at 1.17% for the September quarter.HDFC Bank’s gross NPA ratio, leaving out farming, stood at 0.87% in the September quarter, compared to 0.91% in the previous quarter and 0.99% in the year-ago duration.The bank’s capital adequacy ratio stood at 18.9%, compared to 20% in the matching quarter in 2015.According to its provisionary organization upgrade for the September quarter, HDFC Bank’s gross advances grew 16.3% year-on-year to 32.19 lakh crore. On a consecutive basis, advances increased by 5.2%.The bank’s typical advances under management, changed for inter-bank involvement certificates, costs rediscounted, securitisation and task, grew 14% year-on-year to 31.87 lakh crore. The period-end figure stood at 33.07 lakh crore, a development of 15.3% from the very same quarter in 2015.Overall deposits at HDFC Bank stood at 33.27 lakh crore at the end of September, up 18.8% from the year-ago duration. On a consecutive basis, deposits grew 4.9%, slower than the 5.2% consecutive development in gross advances.Within deposits, bank account and cost savings account (CASA) deposits grew 10.8% year-on-year to 10.52 lakh crore. On a consecutive basis, CASA deposits increased by 2.6%. Term deposits increased 22.8% year-on-year and 6.1% quarter-on-quarter to 22.75 lakh crore.In its company upgrade, HDFC Bank likewise revealed that it had actually mobilised $11.5 billion worth of FCNR(B) deposits under the Reserve Bank of India’s swap window. The bank’s abroad branches extended loan centers aggregating to $5.7 billion versus these deposits. It had actually likewise released $2.5 billion worth of United States dollar-denominated senior unsecured bonds.The outcomes come in the middle of financier concentrate on the bank’s management shift, following the visit of Anup Bagchi as the next handling director and ceo. Bagchi is set to take charge after Sashidhar Jagdishan’s term ends on October 26.Shares of HDFC Bank ended 0.3% greater at 728.85 on Friday, ahead of the outcomes statement. The stock has actually decreased almost 27% up until now in 2026.