HDFC Bank Q2 profit up 4.7 per cent to Rs 19,510 crore

HDFC Bank's September-quarter profit grew 4.7 per cent to Rs 19,510 crore on strong loan and deposit growth, but weaker margins left investors unimpressed.

India's largest private-sector lender reported a 4.7 per cent year-on-year rise in standalone net profit to Rs 19,510 crore for the September quarter of FY27. The board approved the results at its meeting on October 17. Stripping out the sharp fall in treasury trading gains, core profit growth would have been a healthier 12.6 per cent.

Net interest income, the core measure of lending profitability, grew 9.7 per cent to Rs 34,619 crore, while deposits expanded a strong 18.8 per cent to Rs 33.27 lakh crore and gross advances rose 16.3 per cent. The net interest margin stood at 3.16 per cent of total assets, down from 3.26 per cent in the previous quarter. Provisions rose to Rs 3,574 crore, but asset quality improved, with gross NPAs easing to 1.11 per cent from 1.17 per cent in June.

The market reaction was cool: HDFC Bank shares slipped about two per cent in morning trade on Monday as investors focused on margin pressure and the muted profit growth. Brokerages noted that healthy loan growth and improving asset quality remain supportive, but converting balance-sheet expansion into stronger earnings is the next test. The quarter was also the last reported under MD and CEO Sashidhar Jagdishan, whose tenure ends on October 26, with Anup Bagchi set to take over.