Mumbai:HDFC Bank posted relatively modest second quarter profit growth at 4.7% as margin pressures and hardening bond yields in part offset the impact of accelerating asset and deposit growth. The lender will welcome a new chief executive this month, ending protracted uncertainty over succession.
Standalone net profit was 19,510 crore, up from 18,640 crore a year earlier, aided by higher net interest income (NII) and a swelling loan book. NII, or the core income from lending, rose 9.7% YoY to 34,620 crore at India's most-valued lender that has seen its market capitalisation shrink 27% in a year due largely to the uncertainty surrounding leadership succession. Softening asset yields crimped core profitability. Net interest margin (NIM), the metric for core profits, moderated to 3.16% from around 3.27% a year earlier. Return on assets also moderated to 1.78%.
“We have seen a fair amount of underlying business momentum in various metrics, especially in retail and MSMEs,” outgoing chief executive Sashidhar Jagdishan said in a post-earnings call.
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HDFC Bank PAT ticks up 5% amid pressure
HDFC Bank reported a 4.7% rise in standalone net profit for the second quarter, while margin pressure weighed on core profitability. Net interest income rose 9.7% as loans and deposits grew. The lender is also set to welcome a new chief executive this month, ending prolonged succession uncertainty.
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This story was reported and first published by The Economic Times on 18 October 2026. HUE Legacy Ventures did not write it.
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