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HDFC Bank Shares Jump on Improved Asset Quality
3 Nov
Summary
- HDFC Bank's Q2 profit after tax grew 4.7% year-on-year.
- Net interest income saw a 9.7% rise, boosting financials.
- Gross non-performing asset ratio improved to 1.11%.
HDFC Bank experienced a significant share price increase of 3.2% on November 3, 2026, driven by positive investor reactions to its September-quarter financial performance. The bank announced a profit after tax of ₹19,510 crore for Q2FY27, marking a 4.7% rise year-on-year. This was supported by a 9.7% increase in net interest income, reaching ₹34,620 crore.
Despite a slight dip in net interest margin to 3.16%, the bank's asset quality demonstrated notable improvement. The gross non-performing asset (GNPA) ratio decreased to 1.11% as of September 30, 2026, down from 1.17% in the prior quarter. Provisions and contingencies saw a modest increase compared to the previous year.
Analysts have maintained a generally positive outlook, with some retaining 'Outperform' ratings and target prices. While acknowledging subdued earnings growth and margin pressures, they highlighted the bank's healthy balance sheet growth and resilient asset quality. Technical indicators suggest potential for further upside, with key support expected around ₹690-700.