HDFC Bank Q2 results: net interest income in line with estimates, asset quality stable

what happened

India's largest private lender, HDFC Bank, reported September quarter results on Saturday, October 17. According to CNBC-TV18, the figures were close to analyst expectations. Net interest income, the bank's core earnings, rose 9.7% from a year earlier to 34,620 crore rupees, against 31,552 crore a year ago. A CNBC-TV18 poll had expected 34,861 crore.

Net profit grew 4.7% to 19,510 crore rupees, versus a poll estimate of 19,567 crore. Asset quality held up: gross non-performing assets were 35,810 crore, and the gross NPA ratio fell to 1.11% from 1.17% in June. The net NPA ratio dropped to 0.37% from 0.41%.

In a business update, the bank said gross advances rose 16.3% year on year and deposits 18.8%. It also mobilised $11.5 billion in FCNR(B) deposits under the RBI swap window. Shares closed 0.3% higher on Friday but are down nearly 27% so far in 2026.

why it matters

The report comes amid a leadership change, as Anup Bagchi is set to succeed Sashidhar Jagdishan as CEO after his term ends on October 26. Stable loans and lower NPAs support investor confidence, though net interest income in line with forecasts gives little reason to revise views. The bank carries large weight in India's banking index.

market impact

Indian banks: stable asset quality supports HDFC Bank and the Nifty Bank index

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