HDFC Bank Leads Q2 Profit with Rs 19,510 Crore Amidst Competition
In the second quarter results, HDFC Bank tops net profit while Axis Bank shows remarkable growth in profit percentage.
HDFC Bank's net profit stands at Rs 19,510 crore, a 4.7% increase YoY.
Axis Bank records the highest profit growth at 37.6%, reaching Rs 7,003 crore.
ICICI Bank boasts the best net interest margin at 4.18% despite a treasury loss.
In the latest quarterly results released on Saturday, HDFC Bank emerged as the leader in net profit among India's major private banks, reporting Rs 19,510 crore for the second quarter ending September 2026. However, its growth rate of 4.7% was notably lower compared to its competitors. Axis Bank, on the other hand, showcased impressive profit growth of 37.6%, attributed to a low base effect and reduced provisions, while ICICI Bank excelled in net interest margin, achieving 4.18%.
HDFC Bank's modest profit growth was influenced by a decline in trading gains, which fell to Rs 780 crore from Rs 2,390 crore a year earlier. The bank noted that its profit excluding treasury gains increased by approximately 12.6%. In contrast, ICICI Bank's net profit surged by 20.1% to Rs 14,843 crore, despite facing a treasury loss of Rs 230 crore during the quarter. Axis Bank's profit growth was significantly impacted by a one-time provision made in the previous year, leading to a profit of Rs 7,003 crore this quarter.
On the net interest income front, ICICI Bank led with a 17.7% year-on-year increase, totaling Rs 25,339 crore. Axis Bank's net interest income rose by 11.8% to Rs 15,371 crore, while HDFC Bank reported a 9.7% increase, reaching Rs 34,619 crore. The net interest margin for all three banks saw a decline, with ICICI Bank's margin dropping from 4.36% to 4.18%.
Asset quality improved across the board, with HDFC Bank reporting the lowest gross non-performing assets (NPA) ratio at 1.11%. Axis Bank's gross NPA ratio decreased to 1.16%, while ICICI Bank's ratio fell to 1.20%. All three banks reduced their provisions for bad loans, with ICICI Bank setting aside the least amount at Rs 851 crore.
Looking ahead, the performance of these banks will be closely monitored as they navigate the challenges of the financial landscape. Upcoming quarters will reveal how these institutions adapt to changing market conditions and manage their growth strategies effectively.
