HDFC Bank shares jump 1.1% after 18.4% YoY jump in Q2 net profit; asset quality stable

Shares of HDFC Bank will be in focus on Monday after the private lender reported an 18% YoY jump in the net profit for the Q2FY26 quarter. The shares closed 0.6% higher at ₹1,000 apiece on the NSE.

Shares of HDFC Bank have outperformed the benchmark NIFTY50 index in 2025 on a YTD basis with 14.4% returns vs 9% of NIFTY50. The returns were largely led by improved all-around growth in the financials.

During Q2FY26, the company’s net interest income steadily grew by 0.4% QoQ and 4.8% YoY at ₹31,500 crore, while the non-interest income slumped sharply by 34% sequentially at ₹114 crore.

On the balance sheet front, the average advances for the quarter jumped 9% YoY at ₹27.9 lakh crore, while the average deposits grew by 15.1% YoY to ₹27.1 lakh crore. The growth in advances was primarily driven by mid-small market lending at 19.4%, followed by retail and corporate sector growth at 7.4% and 6.4% respectively.

On the asset quality front, the GNPA and NNPA for the quarter improved from 1.4% and 0.5% in Q1FY26 to 1.2% and 0.4% in Q2FY26.

Lastly, the net profit for the quarter jumped 10.8% YoY to ₹18,600 crore as compared to ₹18,100 crore in the previous year's same quarter. While on a sequential basis, the net profit jumped 2.7% QoQ despite a 75% drop in provisions.