HDFC Bank’s profit rises 4.7% to ₹19,510 crore:Net interest income rises 9.7%, asset quality improves, advances and deposits grow double digits

HDFC, the country’s largest private bank, released its results for this year’s July-September quarter today, 17 October. The bank’s standalone net profit rose 4.7% year on year to ₹19,510 crore. The bank’s net interest income (NII) rose 9.7% year on year to ₹34,619.2 crore. The bank’s asset quality also improved. Bank’s results were very close to estimates A CNBC TV18 poll had estimated a 5% rise in net profit to ₹19,567 crore and a 10% increase in NII to ₹34,861 crore. This means the bank’s results were very close to the estimates. Margins, provisions and credit cost In the July-September quarter, HDFC Bank’s net interest margin (NIM) stood at 3.16% on total assets and 3.32% on interest-earning assets. The bank’s provisions and contingencies for the quarter stood at ₹3,570 crore, while the total credit cost ratio was recorded at 0.44%. Bank’s asset quality improved As of 30 September, the bank’s gross non-performing asset (GNPA) ratio improved to 1.11%. It was 1.17% in the previous quarter, ended June 2026, and 1.24% a year earlier, in September 2025. Excluding non-performing assets from the agriculture segment, the GNPA ratio stood at 0.87%, compared with 0.91% in June 2026 and 0.99% in September 2025. The net NPA ratio stood at 0.37% at the end of the September quarter. Double-digit growth in advances and deposits As of 30 September, the bank’s gross advances had increased 16.3% year on year to ₹32,19,500 crore, while advances under management grew 15.3%. Total deposits grew 18.8% year on year Average advances under management during the quarter stood at ₹31,87,200 crore, up 14.1% year on year and 4.9% quarter on quarter. Total deposits rose 18.8% year on year to ₹33,27,400 crore at the end of September. Average deposits grew 16.8% to ₹31,66,400 crore, recording a 5.1% increase quarter on quarter. Current account and savings account (CASA) deposits grew 10.8% year on year, accounting for 31.6% of total deposits. Time deposits, meanwhile, increased 22.8%. Capital adequacy and operating performance HDFC Bank’s capital adequacy ratio under Basel III stood at 18.9% as of 30 September, significantly above the regulatory requirement of 11.9%; it was 20% a year earlier. Its Tier 1 capital adequacy ratio stood at 17.2%, while the Common Equity Tier 1 (CET1) ratio was 17.1%. The bank’s net revenue stood at ₹48,450 crore The bank’s net revenue stood at ₹48,450 crore in the quarter, compared with ₹45,900 crore in the same quarter last year. Other income stood at ₹13,830 crore, including ₹9,690 crore in fees and commissions. Treasury trading gains fell to ₹780 crore from ₹2,390 crore in the same quarter last year. Operating expenses increased from ₹17,980 crore to ₹18,970 crore, while the cost-to-income ratio stood at 39.1%. The bank said its net profit, excluding treasury trading gains, rose by around 12.6% year on year. HDFC Bank shares fell 26% this year HDFC Bank’s share price closed at ₹728.85 on Friday, up 0.28%, ahead of the results. So far in 2026, the stock has declined 26.5%. The bank’s market capitalisation is around ₹11.24 lakh crore. What are net interest income and net interest margin? What is a non-performing asset or NPA? When a person or institution takes a loan from a bank and fails to repay it, the loan is called a bad loan, a non-performing asset, or an NPA. This means the chances of recovering these loans are quite low. As a result, the bank’s money is lost and it suffers losses. According to Reserve Bank of India (RBI) rules, if a bank loan instalment is not paid for 90 days, or three months, the loan is declared an NPA. In the case of other financial institutions, this limit is 120 days. Banks have to do this to clear their books. What are GNPA and NNPA?