macro

HDFC Bank's margin beats SBI's at 3.16% as rate hike seen helping

HDFC Bank reported a 3.16% net interest margin for Q2 FY27, 26 basis points above SBI. It expects its October rate hike to support margins by December.

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what happened

According to TradingView, HDFC Bank's net interest margin came in at 3.16% in the second quarter of FY27, 26 basis points higher than SBI's 2.9%.

The lender's margin has shrunk by 94 basis points since FY21, with a notable slide after its 2023 merger with HDFC. Management said the 25 basis point increase in October should lift margins by December, yet a full quarter of pricier FCNR(B) deposits will claw back part of that gain.

KC Securities placed the HDFC Bank ADR (HDFCBANK) on its list of 12 preferred stocks for Samvat 2083, setting a Rs 980 objective and an implied gain of 41%.

why it matters

For investors the picture is a trade-off: higher rates lift the yield on loans, but costlier funding can erode part of that benefit. Net interest margin remains a key gauge for Indian banks, so results at the largest lenders are watched closely.

market impact

HDFC Bank and SBI shares: margin gap and rate effect shape profit expectations for Indian banks

  • HDFC Bank shares mixed — higher rates support the margin, but pricier funding holds it back

tags

instruments

HDFCBANKSBI

sources

  1. Key facts: HDFC 3.16% NIM tops SBI; hike may aid; KC target Rs.980 — TradingView, 9 November 2026 at 02:00 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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