HDFC Bank Q2 PAT up 11% on stable NII, other income

“We observe visible improvements in economic activity across customer and product segments, supported by the combined impact of tax benefits, GST reforms, and interest rate reductions. This environment allows us to accelerate loan growth, a strategy initiated this quarter that we expect to sustain,” said Sashidhar Jagdishan, MD & CEO at HDFC Bank.

The bank’s loan portfolio expanded 9% year-on-year to ₹28.68 lakh crore, while deposits grew 12% to ₹28.01 lakh crore.Jagdishan noted that the bank deliberately moderated loan growth in FY25 to reduce its credit-deposit ratio from 110% post-merger with HDFC to 96.5%.

HDFC Bank projects its credit growth will align with the banking industry in FY26 and exceed system averages in FY27. Deposit growth is anticipated to remain consistently stronger than industry benchmarks.

The MD highlighted that net interest margins (NIM) will face continued pressure for the next few quarters as asset repricing outpaces deposit rate adjustments following regulatory rate cuts.NIM stood at 3.27% in Q2, a slight decline from 3.35% in the previous quarter.

Asset quality showed stability, with gross non-performing assets (GNPA) improving to 1.24% in Q2 from 1.40% in Q1. Net NPA ratio decreased 5 basis points sequentially to 0.42%.

Published on October 18, 2025