HDFC Bank Q2 Business Updates: Deposits Rise 12%; Gross Advances Up Nearly 10%

HDFC Bank Ltd.'s total advances have grown 9.9% year-on-year to Rs 27.69 lakh crore in the quarter ending in September for the fiscal year 2026, the bank said in an exchange filing on Saturday.

The private lender's period-end deposits increased by 12.1% to Rs 28.01 lakh crore year-on-year during the second quarter of FY26, while HDFC Bank's current account-savings account deposits rose 7.4% to Rs 9.49 lakh crore, the business update said.

In the year-ago period the bank had reported Rs 25.19 lakh crore as the total advances, while period-end deposits stood at Rs 25 lakh crore. On a sequential basis, the private lender had posted gross advances of 26.53 lakh crore for the quarter ended June 30, whereas period-end deposits stood at Rs 27.64 lakh crore.

CASA deposits were Rs 9.3 lakh crore for the April-June period and Rs 8.83 lakh crore for the year-ago period.

"The results of the Bank as of September 30, 2025, will be subject to a limited review by the statutory auditors of the Bank," the filing stated.

Despite higher provisions, HDFC Bank Ltd. reported a healthy growth in standalone net profit in the first quarter of financial year 2026, beating street expectations.

Profit after tax rose 12% year-on-year to Rs 18,160 crore, exceeding the consensus estimates of analysts polled by Bloomberg, which forecast Rs 17,652 crore.

Provisions and contingencies against bad loans rose to Rs 14,441 crore as against Rs 2,602 crore a year ago.

The asset quality of India's largest private lender worsened slightly as the gross non-performing assets ratio rose to 1.4% at the end of the June quarter compared with 1.33% in the previous quarter. Net NPA also rose 0.47% from 0.43% in the March quarter.

Further, on the operational performance front, HDFC Bank's net interest income rose 5% on a year-on-year basis to Rs 31,438 crore.

On Friday, HDFC Bank's scrip settled little changed at Rs 965.15 apiece on the NSE.