HDFC Bank reported a 4.7% rise in standalone net profit to ₹19,510 crore for the second quarter of FY27, as growth in core interest income was partly offset by lower treasury gains and higher expenses. The lender announced the results on Saturday, 17 October 2026, and its shares fell about 1.3% to ₹718.60 on the BSE in early trade on 19 October.
Anup Bagchi will take over as Managing Director and CEO on 27 October, and Deputy Managing Director Kaizad Bharucha has said he will leave at the end of December.
HDFC Bank Q2 FY27 Results at a Glance
Net interest income (NII) rose 9.7% year on year to ₹34,620 crore, supported by 16.3% growth in gross advances. On a consolidated basis, the bank reported net revenue of ₹78,690 crore and net profit of ₹20,700 crore, up 5.55%. Consolidated net profit for the first half of FY27 was ₹39,940 crore.
HDFC Bank Q2 FY27 key numbers
| Metric | Q2 FY27 |
|---|---|
| Standalone net profit | ₹19,510 crore (up 4.7% YoY) |
| Consolidated net profit | ₹20,700 crore |
| Net interest income | ₹34,620 crore (up 9.7% YoY) |
| Net interest margin | 3.16% of total assets; 3.32% of interest-earning assets |
| Gross advances | ₹32.2 trillion (up 16.3% YoY) |
| Deposits | ₹33.27 trillion (up 18.8% YoY) |
| Gross NPA ratio | 1.11% (1.24% a year earlier) |
Income, Costs and Provisions Behind the HDFC Bank Profit
Other income declined 3.6% year on year to ₹13,830 crore, mainly because treasury trading gains fell to ₹780 crore from ₹2,390 crore. It rose nearly 8% from the previous quarter. Fees and commissions, the largest component, increased to ₹9,690 crore from ₹8,840 crore, while foreign exchange and derivatives revenue slipped to ₹1,550 crore from ₹1,590 crore.
Operating expenses rose to ₹18,970 crore from ₹17,980 crore a year earlier, and the cost-to-income ratio was 39.1%. Provisions and contingencies came to ₹3,570 crore, with a total credit cost ratio of 0.44%. The net interest margin was 3.32% of interest-earning assets, 8 basis points lower than in the previous quarter.
Loan Growth, Deposits and Asset Quality
Gross advances reached ₹32.2 trillion at 30 September 2026. Retail loans grew 11.7% year on year, loans to small and mid-market enterprises rose 23.5%, and corporate and other wholesale loans increased 16.4%. Overseas advances made up 3.3% of the total.
- Total deposits rose 18.8% to ₹33.27 trillion, with time deposits up 22.8% to ₹22.76 trillion.
- CASA deposits grew 10.8% and accounted for 31.6% of total deposits.
- Savings deposits stood at ₹7.16 trillion and current account deposits at ₹3.36 trillion.
- The balance sheet expanded to ₹45.78 trillion from ₹40.03 trillion a year earlier.
The gross NPA ratio improved to 1.11% from 1.17% in the June quarter, and the net NPA ratio was 0.37%. Excluding the agricultural segment, the gross NPA ratio was 0.87%. Retail deposit growth of about 11% stayed soft, according to a Motilal Oswal research note carried by Business Standard.
Leadership Change at HDFC Bank
Bagchi, previously Managing Director and CEO of ICICI Prudential Life Insurance, was named to succeed Sashidhar Jagdishan for a three-year term, with the Reserve Bank of India approving the appointment on 1 October. He takes charge on 27 October. At the post-results media call, Jagdishan said the margin trajectory should turn upwards from the next quarter and that asset quality remains a strength.
In a separate exchange disclosure on 17 October, the bank said Kaizad Bharucha had requested cessation from service effective 31 December 2026. Bagchi thanked Bharucha for building the bank’s credit quality culture and said the post-merger balance sheet and broader transformation remain works in progress.
What Analysts Flagged
Jefferies said the bank’s profit was ahead of its estimates, with better NII growth and robust credit quality. Elara Capital said the bank is gradually regaining momentum but noted that core earnings have yet to accelerate meaningfully, with return on assets at 1.7% and margin recovery still a challenge.
Analysts quoted in the report said the new CEO’s strategy to balance growth with faster margin improvement is a key monitorable. One brokerage said that, until a replacement for Bharucha is named, there could be an overhang for the stock in the near term.
HDFC Bank Share Price Reaction on 19 October
The stock fell to a day’s low of ₹716.90 on the BSE, compared with the previous close of ₹728.10. By 9:20 am it traded at ₹718.60, down 1.3%. Reports described the reaction as muted given that profit came in ahead of expectations.
The shares had already weakened through the year. An Upstox report on 5 October said the stock had de-rated about 32% year to date, and HDFC Bank was among the top losers on the Sensex on 19 October alongside Axis Bank and Infosys.
Investors who want to buy bank shares first need to open a demat account with a depository participant. Those who follow results-day moves on an online trading platform will see the effect of leadership news in price and volume data alongside the earnings figures.
Next Dates to Watch for HDFC Bank
The key date is 27 October, when Bagchi assumes office. Bharucha’s last day is 31 December 2026, and a brokerage note said a replacement had not yet been appointed. The bank’s disclosures on NSE and BSE will carry any announcements on the management team.
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