HDFC Bank's Q2 profit rises 4.7% as treasury gains drop 67%

what happened

According to ANI, citing the bank's earnings release filed with stock exchanges on Saturday, HDFC Bank's standalone net profit for the July–September quarter of FY27 rose 4.7% year on year to Rs 19,510 crore.

The main drag was a 67% fall in treasury trading gains, which dropped to Rs 780 crore from Rs 2,390 crore a year earlier. Net interest income still climbed 9.7% to Rs 34,620 crore, which the bank linked to continued lending growth. Net interest margin was 3.16% on total assets and 3.32% on interest-earning assets.

Asset quality improved: gross non-performing assets fell to 1.11% of gross advances from 1.24% a year earlier, and net NPAs stood at 0.37%. Total deposits grew 18.8% to Rs 33.27 lakh crore, while gross advances rose 16.3% to Rs 32.20 lakh crore.

why it matters

Weaker treasury income shows that the bank's core lending and deposit business is becoming the main driver of earnings. Investors will likely focus on how sustainable profit is without one-off gains, a point relevant to India's banking sector and the Nifty Bank index.

market impact

Indian banks: core lending growth is solid, but weaker treasury income limits HDFC Bank's profit growth

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