HDFC Bank Q2 Results FY27: Profit up 4.7% YoY

Key numbers from Q2 FY27

HDFC Bank, India’s largest private sector lender, reported a standalone net profit of ₹19,509 crore for Q2 FY27, up 4.6% year-on-year from ₹18,641 crore. In market reporting around the same result, profit was also cited at ₹19,510 crore, up 4.7% year-on-year, indicating rounding differences in disclosure. Net interest income (NII) rose 9.7% year-on-year to ₹34,619.2 crore. The bank also disclosed total revenue of ₹83,430 crore for the quarter, compared with ₹76,690 crore a year earlier. The quarter ended September 30, 2026, and the earnings call was held on October 17, 2026.

What management highlighted on the earnings call

The Q2 FY27 earnings conference call featured the bank’s senior leadership, including CFO Srinivasan Vaidyanathan and CEO Sashidhar Jagdishan. Management discussions focused on deposits and loan momentum, with emphasis on retail and MSME segments. The bank said retail disbursements accelerated during the quarter. It also discussed margin dynamics, noting the impact of repricing and funding costs. The bank highlighted ongoing efforts around digital adoption to reduce service turnaround times. It also said it has integrated artificial intelligence into parts of its security and collection processes.

Deposits grew 18.8% with FCNR (B) impact

HDFC Bank reported deposits grew 18.8% year-on-year on a reported basis. Management said this included a 4 percentage point lift from a special FCNR (B) window. The bank also shared that CASA grew about 10.8% on an overall basis. Within CASA, retail CASA growth was about 11.2% year-on-year, compared with 9% a year ago, as per the call transcript. Management added that the bank added about 1.7 million liability relationships in Q2, which was described as 25% higher than Q1 and 33% higher than the fourth quarter of last year.

Retail disbursements hit ₹90,000 crore in the quarter

A key operating datapoint from the call was the pickup in retail disbursements. HDFC Bank said retail disbursements crossed ₹90,000 crore in Q2 FY27. This compared with ₹76,000 crore in Q1 of the same fiscal year. The bank characterised the pace as accelerating, linking it to improved momentum across retail products. It also referenced expansion in the MSME loan book in the broader commentary provided alongside call highlights.

Asset quality improved; GNPA at 1.11%

HDFC Bank reported improvement in asset quality, both sequentially and year-on-year. Gross non-performing assets (GNPA) stood at 1.11% for the quarter. The call takeaways stated this was down 13 basis points compared to the prior year. The improvement in GNPA was also highlighted in market summaries of the results. These figures matter because they help investors track credit costs and underwriting quality as the loan book grows.

Margins, cost of funds, and what changed

Net interest margin (NIM) for Q2 FY27 was reported at 3.32%. Management attributed the margin outcome to faster asset repricing and a lag in the cost of funds. Cost of funds was reported at 4.4%, and management said it remained flat compared to the previous quarter. In a separate management summary, margins were described as being at the bottom with a neutral-to-positive trajectory, while also noting that a full-quarter FCNR impact could offset some repricing benefit.

AUM growth and FCNR (B) leverage effect

The bank reported total assets under management (AUM) grew 15.3% year-on-year. The call takeaways also stated the figure included a 1.9% impact from leverage associated with foreign currency non-resident deposits. This disclosure helps separate underlying business growth from the mechanical effect of FCNR (B) related balance-sheet leverage. Management said SME and retail assets were leading the AUM growth.

CEO succession: Anup Bagchi to take over

Alongside the quarterly results, the bank disclosed a leadership transition. It announced that Anup Bagchi will succeed Sashidhar Jagdishan as Managing Director and Chief Executive Officer. The earnings call and accompanying commentary referenced the bank managing this executive leadership transition. Leadership succession is closely tracked in banking given its influence on strategy, risk appetite, and execution priorities.

Investor communication: audio recording released

HDFC Bank said it released the audio recording of its Q2 FY27 earnings call held on October 17, 2026. The bank stated that the call covered unaudited results for the quarter ended September 30, 2026. It also said the recording is available on its official website under the Investor Relations section. The disclosure was described as part of standard regulatory protocols for dissemination to stock exchanges, including BSE and NSE.

Snapshot table of reported metrics

Why the quarter matters for investors

For investors, Q2 FY27 combined moderate profit growth with stronger NII growth and improving asset quality. The deposit growth number, and the disclosure about the FCNR (B) window contribution, provides context for funding trends in the quarter. The rise in retail disbursements signals momentum in retail credit, a segment that typically carries different yields and risk characteristics versus wholesale lending. At the same time, NIM at 3.32% and cost of funds at 4.4% keep the focus on how quickly asset yields adjust compared with deposit pricing.

What to watch next

The bank has already provided formal investor communication through its earnings call and the release of the audio recording. Investors are likely to track how deposit growth evolves once the FCNR (B) related benefit normalises, and how margin commentary plays out in subsequent quarters. Market participants will also monitor execution during the CEO transition to Anup Bagchi. Any further updates are expected through scheduled filings, investor presentations, and subsequent quarterly results.