HDFC Bank Q2 earnings: Net profit rises 11% to ₹18,641 crore, NII rises 5%; asset quality improves

HDFC Bank, the country's largest private sector lender on Saturday, October 18, reported net profit of ₹18,641 crore in the second quarter of current financial year, marking an increase of 11% from ₹16,821 crore in the same period last year.

The bank's net interest income or difference between interest earned on loans and expended on deposits rose 5% to ₹31,552 crore in July-September period from ₹30,114 crore in the year-ago period.

HDFC Bank's provisions for bad loans increased sharply by 30% to ₹3,500 crore as against ₹2,700 crore in the year-ago period. The bank has made a floating provision of ₹9,000 crore in line with the board approved policy in the first half of current fiscal, the bank said in an exchange filing.

The bank's asset quality showed an improvement as its gross non-performing assets (NPA), as a percentage of total advances, improved to 1.24% from 1.36% in the year-ago period.

The Mumbai-based lender's net NPA came in at 0.42%. In absolute terms its gross NPAs were ₹34,289 crore as against ₹34,251 crore in the same period last year.

"Gross advances were at ₹27,692 billion as of September 30, 2025, an increase of 9.9% over September 30, 2024. Advances under management grew by 8.9% over September 30, 2024. Retail loans grew by 7.4%, small and mid-market enterprises loans grew by 17.0% and corporate and other wholesale loans grew by 6.4%. Overseas advances constituted 1.8% of total advances," HDFC Bank said in a press release.

At the end of September quarter, HDFC Bank's distribution network was at 9,545 branches and 21,417 ATMs across 4,156 cities as against 9,092 branches and 20,993 ATMs across 4,088 cities in the year-ago period.

HDFC Bank shares ended 0.63% higher at ₹1,000.60 a day ahead of its earnings announcement.