Author: Nishtha Mehrotra | EQMint
Synopsis:
- HDFC Bank’s Q2 FY27 standalone net profit rose 4.7% year-on-year to ₹19,510 crore, while net interest income increased 9.7%.
- Lower treasury gains and higher expenses limited overall profit growth.
- Margins eased, while loan growth and improving asset quality supported the quarter’s performance.
HDFC Bank reported a 4.7% year-on-year increase in standalone net profit to ₹19,510 crore for Q2 FY27. Net interest income (NII) grew 9.7% to ₹34,620 crore, but lower treasury gains and higher expenses limited earnings growth.
Key Q2 FY27 numbers
- Net profit: ₹19,510 crore, up 4.7% year-on-year.
- Net interest income: ₹34,620 crore, up 9.7%.
- Net interest margin: 3.16% on total assets, compared with 3.26% in Q1 FY27.
- Gross advances: Up 16.3% year-on-year.
- Deposits: Up 18.8% year-on-year.
- Gross NPA: 1.11%, down from 1.17% in the previous quarter.
Treasury income weighs on earnings
Treasury trading gains fell to ₹780 crore from ₹2,390 crore a year earlier. The decline, alongside higher operating expenses and provisions, weighed on profit growth. Other income fell 3.6% year-on-year to ₹13,830 crore.
Margins and asset quality
Net interest margin declined to 3.16% on total assets from 3.26% in the previous quarter. However, the gross NPA ratio improved to 1.11%, while net NPA stood at 0.37%.
Deposits grew faster than advances during the quarter, supporting the bank’s funding position. Investors will watch whether margins recover while loan growth and asset quality remain stable.
Disclaimer: This article is for information purposes only and is not investment advice.
For more such information, visit EQMint
Join our WhatsApp channel for timely updates: Whatsapp
