HDFC Bank Q2 results: Provisions drop sharply QoQ, earnings beat estimates

HDFC Bank reported a 10.8% year-on-year increase in net profit for the September quarter, supported by stable growth in its loan book and continued improvement in asset quality.The country’s largest private lender said its net profit rose to ₹18,641.3 crore, up from ₹16,821 crore in the year-ago period, exceeding market estimates of ₹17,252 crore, according to a CNBC-TV18 poll.

Net interest income (NII) was at ₹31,551.5 crore, compared with ₹30,114 crore a year earlier, also above consensus estimates of ₹31,298 crore. It’s net interest margin (NIM), came in at 3.27%.

HDFC Bank’s gross non-performing assets (GNPA) declined to ₹34,289.5 crore, with the gross NPA ratio at 1.24%, down from 1.40% in the previous quarter.Net NPAs were at ₹11,447.3 crore, translating into a net NPA ratio of 0.42%, compared with 0.47% in Q1 FY26.

Provisions for the quarter stood at ₹3,500.5 crore, lower than ₹14,441.6 crore in the previous quarter, which included ₹9,000 crore floating provisions and ₹1,700 crore contingency provisions. It was, however, higher than ₹2,700.5 crore reported a year ago.

Pre-provision operating profit (PPOP) came in at ₹27,924 crore, up 13% YoY, and in-line with expectations.

Non-interest income stood at ₹14,350 crore, up 25% YoY but down 34% sequentially. The Q1FY26 figure of ₹21,730 crore included a one-off gain of ₹9,128 crore from the stake sale of HDB Financials.

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