HDFC Bank posts modest profit rise as net interest margin falls to record low and treasury income plunges
HDFC Bank reported standalone net profit of ₹19,510 crore for Q2 FY27, a 4.7% year‑on‑year increase. Net interest income grew 9.7% to ₹34,620 crore, but the net interest margin slipped to a record low of 3.16%. Treasury trading gains fell 67.4% to ₹780 crore, dragging overall earnings growth. The bank also posted a gross NPA ratio of 1.11% as loan and deposit balances expanded.
Why it matters
The margin compression and volatile treasury earnings mean reported profit growth lags the underlying loan‑book expansion, which could keep earnings guidance modest until margin pressure eases (as noted in the earnings call). The modest profit rise and lower margin may temper short‑term investor sentiment on the stock.
Key facts
- 1Standalone net profit was ₹19,510 crore, up 4.7% YoY. indiaipo.in
- 2Net interest income increased 9.7% YoY to ₹34,620 crore. indiaipo.in
- 3Net interest margin fell to 3.16%, the lowest on record. indiaipo.in
- 4Treasury trading income declined 67.4% YoY to ₹780 crore. indiaipo.in
- 5Gross non‑performing asset ratio was 1.11% at quarter‑end. indiaipo.in
Summary written by AlphAI AI Desk from 20 of 34 sources. Not investment advice. Figures are as stated by the linked sources.