HDFC Bank, India’s largest private sector lender, reported September quarter results on Saturday, October 17, which came were in-line with analyst expectations.
Net Interest Income (NII) or the bank’s core income grew 9.7% from Q2FY26 to ₹34,620 crore from ₹31,552 last year. A CNBC-TV18 poll had estimated an NII of ₹34,861 crore.
Net profit for the September quarter stood at ₹19,510 crore, up 4.7% from from ₹18,641 crore in Q2FY26. The bank’s bottom line stood in line with the CNBC-TV18 poll estimate of ₹19,567 crore.
HDFC Bank’s asset quality remained stable during the September quarter, with gross non-performing assets (GNPA) in absolute terms at ₹35,810 crore, compared with ₹35,846 crore in June.
Net non-performing assets (NNPA) stood at ₹11,851 crore, against ₹12,357 crore in the previous quarter. In percentage terms, the gross NPA ratio stood at 1.11%, while the net NPA ratio was 0.37%, compared with 1.17% and 0.41%, respectively, in the June quarter. The Street had estimated the gross NPA ratio at 1.17% for the September quarter.
As per its provisional business update for the September quarter, HDFC Bank’s gross advances grew 16.3% year-on-year to ₹32.19 lakh crore. On a sequential basis, advances increased by 5.2%.
The bank’s average advances under management, adjusted for inter-bank participation certificates, bills rediscounted, securitisation and assignment, grew 14% year-on-year to ₹31.87 lakh crore. The period-end figure stood at ₹33.07 lakh crore, a growth of 15.3% from the same quarter last year.
Total deposits at HDFC Bank stood at ₹33.27 lakh crore at the end of September, up 18.8% from the year-ago period. On a sequential basis, deposits grew 4.9%, slower than the 5.2% sequential growth in gross advances.
Within deposits, current account and savings account (CASA) deposits grew 10.8% year-on-year to ₹10.52 lakh crore. On a sequential basis, CASA deposits increased by 2.6%. Term deposits rose 22.8% year-on-year and 6.1% quarter-on-quarter to ₹22.75 lakh crore.
In its business update, HDFC Bank also disclosed that it had mobilised $11.5 billion worth of FCNR(B) deposits under the Reserve Bank of India’s swap window. The bank’s overseas branches extended loan facilities aggregating to $5.7 billion against these deposits. It had also issued $2.5 billion worth of US dollar-denominated senior unsecured bonds.
The results come amid investor focus on the bank’s leadership transition, following the appointment of Anup Bagchi as the next managing director and chief executive officer. Bagchi is set to take charge after Sashidhar Jagdishan’s term ends on October 26.
Shares of HDFC Bank ended 0.3% higher at ₹728.85 on Friday, ahead of the results announcement. The stock has declined nearly 27% so far in 2026.