HDFC Bank Profit Up 5%, Misses Analyst Expectations

HDFC Bank's net profit for the September quarter saw a modest increase of nearly 5% year-on-year, amounting to Rs 19,510 crore. This figure fell slightly short of the Rs 19,606 crore estimated by analysts. The bank attributed the subdued profit growth to reduced treasury gains compared to the previous year, noting that normalized profit growth was 12.6%.

While net interest income grew by 9.7% to Rs 34,619 crore, net interest margins (NIMs) contracted to 3.16% from 3.30% in the prior quarter. Management anticipates an upward trend in margins from the next quarter onward, though the full impact may take several quarters to materialize. Gross advances increased by 16.3% to Rs 32.20 lakh crore, and total deposits grew by 18.8% to Rs 33.27 lakh crore.

The bank is navigating a leadership transition, with Deputy Managing Director Kaizad Bharucha stepping down on December 31, 2026, after over three decades. Anup Bagchi is scheduled to assume the role of MD and CEO on October 27, 2026, succeeding Sashidhar Jagdishan. Management assured that institutional processes ensure continuity and stability during this transition.

Asset quality improved, with the gross non-performing asset (GNPA) ratio at 1.11% and the net NPA ratio at 0.37%. The total capital adequacy ratio stood at 18.9%, indicating a strong capital position. The bank is also exploring strategies like selling down or securitizing its home loan portfolio to enhance competitive pricing.