- HDFC Bank posted the highest net profit of Rs 19,510 crore with 4.7% growth year-on-year
- Axis Bank led profit growth at 37.6%, aided by a low base and reduced provisions
- ICICI Bank had the best net interest margin of 4.18% and 20.1% net profit growth
The second-quarter scorecard of India's three major private lenders were out on Saturday, with HDFC Bank, Axis Bank and ICICI Bank scoring high on at least one of the key metrics under investors' watch.
The largest bottom line was recorded by HDFC Bank, India's largest private lender, but its growth trailed behind the two rivals. The pace of profit growth was the fastest for Axis Bank, though it was a result of a low-base effect and a decline in provision. ICICI Bank, on the other hand, logged the best margin among the three, and increased its core income the most.
Here's a look at how the three lenders fared on key metrics.
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Net Profit
HDFC Bank's standalone net profit rose 4.7% year-on-year to Rs 19,510 crore in the quarter ended September 2026. The modest growth was linked to treasury income, with trading gains declining to Rs 780 crore from Rs 2,390 crore a year ago. The lender said its profit sans treasury gains rose by about 12.6% during the three-month period.
ICICI Bank's net profit jumped 20.1% to Rs 14,843 crore, from Rs 12,359 crore in the year-ago period. The profit before tax, excluding treasury, grew 23.4%, even though it booked a treasury loss of Rs 230 crore during the June-September period.
Axis Bank's bottom line jumped 37.6% to Rs 7,003 crore, as against a profit of Rs 5,090 crore recorded in the corresponding period of last year. Much of that is about the base. In Q2 FY26, the bank made a one-time provision of Rs 1,231 crore on priority-sector loans that were declassified after an RBI inspection, which pulled down that quarter's profit. Accordingly, total provisions this quarter fell 52% year-on-year to Rs 1,694 crore. When compared with the June quarter, the profit actually slipped 1.6% from Rs 7,114 crore.
Net Interest Income
Among the three lenders, ICICI Bank fared strongly on the core income front, with its net interest income (NII) rising 17.7% year-on-year to Rs 25,339 crore. Axis Bank's NII grew 11.8% to Rs 15,371 crore, whereas HDFC Bank's NII rose 9.7% to Rs 34,619 crore.
Q2 FY27 At A Glance (Standalone)
| HDFC Bank | ICICI Bank | Axis Bank | |
|---|---|---|---|
| Net profit (Rs crore) | 19,510 | 14,843 | 7,003 |
| Profit growth (YoY) | 4.7% | 20.1% | 37.6% |
| NII (Rs crore) | 34,619 | 25,339 | 15,371 |
| NII growth (YoY) | 9.7% | 17.7% | 11.8% |
| NIM | 3.32%* | 4.18% | 3.36% |
| Gross NPA | 1.11% | 1.20% | 1.16% |
| Net NPA | 0.37% | 0.30% | 0.35% |
| Provisions (Rs crore) | 3,574 | 851 | 1,694 |
| CET-1 ratio | 17.1% | 16.01% | 14.61% |
Net Interest Margin
All three banks saw margins compress, partly because they took in large foreign-currency deposits under the RBI's FCNR(B) swap window. ICICI Bank's NIM came in at 4.18%. That was down from 4.36% in the June quarter and 4.30% a year ago.
Axis Bank took the sharpest hit. Its NIM fell to 3.36%, from 3.46% in June and 3.73% a year ago. The bank said the FCNR deposits alone cut 11 basis points off its margin; excluding them, NIM would have been 3.47%.
HDFC Bank reported a NIM of 3.32% on interest-earning assets, or 3.16% on total assets.
Asset Quality
All three lenders recorded a decline in their bad loans, with HDFC Bank posting the lowest gross non-performing assets (NPA) ratio of 1.11%. This compares with 1.17% in June. Its net NPA ratio was 0.37%, lower as compared to 0.41% in the first quarter.
Axis Bank's gross NPA ratio slipped to 1.16%, from 1.28% in the preceding quarter, whereas the net NPA ratio fell to 0.35% from 0.39% in the June quarter.
ICICI Bank's gross NPA ratio declined to 1.2% from 1.38% in the previous quarter, whereas the net NPA ratio also improved to 0.30% from 0.35% sequentially.
ICICI Bank also set aside the least money for bad loans. Its provisions were Rs 851 crore, compared with Rs 1,694 crore at Axis Bank and Rs 3,574 crore at HDFC Bank.
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Loans And Deposits
The massive inflow through the FCNR(B) window boosted balance sheets across the board. ICICI Bank recorded a 27.1% jump in deposits, whereas its loans grew 30%. Exclusind the strategic swap window, the deposits are up 17%, whereas the loans increased by 24.1%.
At Axis Bank, the advances surged 23% and deposits rose 21% after factoring in the FCNR(B) effect. Excluding the same, the two metrics rose by 19.1% and 17%, respectively.
HDFC Bank's gross advances are up 16.3% during the quarter, whereas deposits grew 18.8%.
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