HDFC Bank Q2 Profit Rises 4.7% as Slumping Treasury Gains Offset Lending Growth
HDFC Bank Limited (NSE:HDFCBANK) posted a 4.7% year-on-year rise in standalone net profit for the July-September quarter of FY27, reaching Rs 19,510 crore. A sharp 67% plunge in treasury trading gains to Rs 780 crore weighed on overall earnings growth, down from Rs 2,390 crore in the same period a year ago.
Despite the drag from treasury operations, the bank demonstrated solid performance in its core business. Net interest income increased 9.7% year-on-year to Rs 34,620 crore, while total deposits expanded 18.8% to Rs 33.27 lakh crore and gross advances grew 16.3% to Rs 32.20 lakh crore. Asset quality also improved, with gross non-performing assets declining to 1.11% of gross advances, compared with 1.17% in the previous quarter and 1.24% a year earlier. Excluding treasury gains, profit after tax rose approximately 12.6%.
Investors will monitor whether core lending growth and deposit expansion remain robust enough to offset volatility in treasury earnings in coming quarters. Market participants will also keep a close eye on the bank's net interest margin, which stood at 3.16% on total assets and 3.32% on interest-earning assets during the quarter.
Key points
- HDFC Bank reported a 4.7% year-on-year increase in Q2 FY27 standalone net profit to Rs 19,510 crore.
- Treasury trading gains plunged 67% to Rs 780 crore, down from Rs 2,390 crore in the year-ago period.
- Net interest income rose 9.7% year-on-year to Rs 34,620 crore, supported by a 16.3% growth in gross advances.
- Gross non-performing assets improved to 1.11% of advances, compared to 1.17% in Q1 and 1.24% a year earlier.
- Total deposits increased by 18.8% year-on-year to reach Rs 33.27 lakh crore.
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What was HDFC Bank's net profit for Q2 FY27?
HDFC Bank reported a standalone net profit of Rs 19,510 crore for Q2 FY27, representing a 4.7% increase compared to the same period in the previous year.
Why was HDFC Bank's profit growth restricted in Q2 FY27?
Profit growth was limited by a 67% drop in treasury trading gains, which fell to Rs 780 crore from Rs 2,390 crore in the year-ago quarter, despite strong growth in core lending income.
How did HDFC Bank's asset quality perform in Q2 FY27?
Asset quality improved, with gross non-performing assets dropping to 1.11% of gross advances as of September 30, 2026, down from 1.17% in the previous quarter and 1.24% a year earlier.