HDFC Bank posts 5% jump in Q2 net profit as outgoing CEO era nears end

HDFC Bank reported a standalone net profit of ₹19,609.96 crore for the second quarter of FY27, marking a 5.2% increase compared to the same period last year. India's largest private sector lender also posted a 9.72% rise in net interest income, reaching ₹34,619.18 crore during the quarter, with total interest earned standing at ₹83,426.60 crore.

Growth and Loans

The bank saw gross advances grow 16.3% year-on-year to ₹32,19,500 crore as of September 30, 2026. Small and mid-market enterprise loans drove this lending growth with a 23.5% jump, while corporate and wholesale loans expanded by 16.4% and retail loans grew by 11.7%. Total deposits climbed 18.8% to ₹33,27,400 crore, and current account and savings account deposits made up 31.6% of that total. Meanwhile, asset quality improved as the gross non-performing asset ratio fell to 1.11% from 1.24% a year ago, while the net bad-loan ratio remained steady at 0.37%.

Leadership and Market

This earnings report marks the final financial update under managing director and chief executive officer Sashidhar Jagdishan, whose tenure ends on October 26, with Anup Bagchi lined up to take his place. On the stock front, HDFC Bank shares closed 0.28% higher at ₹728.85 ahead of the announcement, though the stock has dropped 26.5% over the course of 2026.

Context

Banks track net interest income and bad-loan ratios closely to measure core lending health and risk management. Leadership transitions at major financial institutions often draw high market interest as investors look for shifts in strategic direction.