HDFC Bank has released its financial results for the second quarter of the fiscal year (July–September 2025), showing a solid increase in profitability and continued growth in its loan portfolio.

Profitability and Income

The bank recorded a Profit After Tax (PAT) of ₹18,640 crore for the quarter, reflecting a 10.8% growth compared to the ₹16,820 crore reported in the same quarter of the previous year.

Key income metrics for the period were:

• Net Interest Income (NII): This stood at ₹31,550 crore, marking a 4.8% increase from the ₹30,110 crore earned in the quarter ending September 30, 2024.
• Core Net Interest Margin (NIM): The NIM on total assets was 3.27%. This figure saw a slight sequential decline from 3.35% in the preceding quarter, indicating that the repricing of assets outpaced that of deposits during the period.

Asset Quality and Provisions

HDFC Bank demonstrated an improvement in asset quality metrics:

• The Gross Non-Performing Assets (NPA) ratio reduced to 1.24% of gross advances, a decrease from 1.36% reported a year earlier.
• The Net NPA ratio was 0.42% of net advances.

The bank allocated ₹3,500 crore towards provisions and contingencies, resulting in a total credit cost ratio of 0.51% for the reporting quarter.

Business Growth and Capital

The bank’s overall lending book, or Gross Advances, saw substantial growth, expanding by 9.9% year-over-year to ₹27,69,200 crore. Growth was driven across multiple segments:

• Small and Mid-Market Enterprises: Increased by 17%.
• Retail Loans: Grew by 7.4%.
• Corporate and Other Wholesale Loans: Rose by 6.4%.

HDFC Bank continues to maintain a strong capital buffer. Its total Capital Adequacy Ratio (CAR) reached 20%, which is significantly higher than the regulatory minimum of 11.9%. The Tier 1 CAR stood at 17.9%.