HDFC Bank's second-quarter standalone profit rises just 4.7%

what happened

According to TradingView, HDFC Bank's standalone net profit for the second quarter of fiscal 2027 rose 4.7% year on year to ₹19,510 crore. Net interest income climbed 10% to ₹34,619 crore, but that gain was largely offset by a 4% drop in other income and an 11% rise in tax expense. Treasury trading gains fell to ₹780 crore from ₹2,390 crore a year earlier.

The net interest margin slipped to 3.16% from 3.27%. CFO Srinivasan Vaidyanathan linked this to constraints and choices made over the past two quarters, and said it would take a few more quarters to restore the margin. Asset quality improved, with gross NPAs falling to 1.11% from 1.24%, advances up 16% and total deposits up 19%.

why it matters

The key question for markets is margin momentum. Low-cost CASA deposits fell to 31.6% of total deposits from 33.9% a year earlier, which bears on funding costs. The report shows steady loan growth alongside tighter spreads, a point that matters for how investors value India's banking sector.

market impact

HDFC Bank and Indian banks: weaker margins and profit growth weigh on sector valuations.

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